State budget director says ballot proposals lead to uncertain credit rating

Oct 25, 2012

The state budget director says credit agencies won’t upgrade Michigan’s rating because of proposals on the November ballot.

John Nixon today spoke alongside opponents of Proposal Five. It would require a statewide vote or two-thirds majorities of the Legislature to approve a tax increase.

But Nixon said all the initiatives cast doubt about the state’s economic future.

“Any one of them doesn’t really dictate your credit rating. If you have a whole slew of them—where you’re getting hit on the expenditure side, you’re getting hit on the revenue side, you’re getting hit on the economic development side—all at once you’ve got a recipe for not a lot of confidence with the investors and the rating agencies,” he said.

Nixon said Michigan might ask the rating agencies to reconsider after November Sixth. He and Governor Rick Snyder met with rating agency officials earlier this month.

Proposal Five supporters say Nixon’s claim is bogus and only meant to scare voters.