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County debt under review in Durham, Wake

Posted August 8, 2011
Updated August 9, 2011

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— The downgrade of the U.S. credit rating has prompted a review of Durham County's and Wake County's debt, North Carolina State Treasurer Janet Cowell said Monday.

Rating agency Moody's also contacted Greensboro, Winston-Salem, Mecklenburg County, New Hanover County and Guilford County to notify them of an immediate review of their debt, Cowell said.

The reviews are a direct result of the U.S. downgrade, she said. Various factors could be involved, including the local and county governments’ dependence on federal funding, the amount of variable-rate debt they’re carrying and the size of their reserve funds.

The process should be concluded in a few weeks, she said.

North Carolina maintains its three-star bond rating – the highest possible – so Cowell said she expects little fallout on the state's borrowing ability from the U.S. downgrade.

The state's conservative investment policies also will help the state's pension funds weather the volatility in the stock markets, she said.

"We're investing for the long term, so we'll survive some of that volatility," she said. "We positioned and diversified as much as possible so that we don't have all our eggs in one basket."

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  • superman Aug 11, 2011

    I own my home free and clear. I have 3 cars that are paid for. I pay off my credit card every month and get cash back. I do not have monthly payments on anything except insurance, utility bill etc. I dont have a cell phone either. People use credit and live beyond their means. We dont need to cut "back" on free education-- we need to "stop it" Parents should have to pay for their own mistakes.

  • garychapelhill Aug 9, 2011

    "US Cities, States and even our country should NEVER be in debt."

    Seriously? you tea party people really are brain dead. Do you own a home? a car? Did you pay cash for them, or buy them on credit? I'm thinking it's probably the latter. So, guess what Einstein, that means you're in debt! So are you a deadbeat too?

  • mep Aug 9, 2011

    US Cities, States and even our country should NEVER be in debt.

  • dollibug Aug 9, 2011

    Wake County Court system....has a lot of money to spare....or so it seems....the GRAND JURY indicts people without ANY SOLID EVIDENCE...and then spend a lot of time and money on court cases...that should have not been in court to begin with...without evidence...and then....when there is NO CONVICTION...they decide to retry the person charged....now...if there was new evidence pointing to the accused being guilty....I would also agree...to GO FOR IT...but wasting money for no reason....it needs to STOP....

    There are going to be more people "committing crimes" to get into jail...a roof over their heads, 3 meals a day...and everything paid for by the taxpayers...something needs to be done to put these people to work...while in jail...and make them earn their keep and pay taxes too...surely someone can think of something for these "freeloaders" to do...we are cutting back on education....when the prisoners get a free ride...not good for anyone....

  • 1911A1 Aug 9, 2011

    They need to cut spending too. They should get more years out of city / county vehicles including buses. They should cut a little everywhere .

  • davidk_at_unc Aug 9, 2011

    "Never understood why we don't use the schools 24/7. Have some students go to night school." -- No Party Affiliate

    Now THERE'S a brilliant idea! Send the little kiddies out past their bedtime. And what are they supposed to do during the day when Mom and Dad are at work? You gonna run those buses twice a day? How many OTHER things can we come up with about this idea that are just plain WRONG???

  • ykm Aug 9, 2011

    An interesting article to read is the bond defaults predicted by Meredith Whitney.

  • ynniyric Aug 9, 2011

    Look at any community in the nation...I promise that the one's who spend money to have a good public school system have on average less crime. Less crime equals a better place to live and as a result the local economy will grow. Having students go at night is a valid proposal, however there are lots of challenges involved in that as well.

  • dollibug Aug 9, 2011

    AMERICA needs to AUDIT IT ALL....from start to finish...FIND OUT EXACTLY WHAT IS GOING ON IN THIS COUNTRY...and let the voters know...I bet we would all be quite shocked at the results...NO ONE has TOOK CHARGE of anything...we are a train...out of control...

  • jscletsplay1002002 Aug 9, 2011

    Never understood why we don't use the schools 24/7. Have some
    @ No Party Affiliate

    "students go to night school. Why build another school especially when the birth rate has been declining the past 3 years."

    I hope you dont think birth rate is the only reason to base an areas growth of population. People are moving here like crazy. Look at all the accolades this area has recieved in the last 10 yrs or so. I think last I heard that People are coming here to retire the most right after Florida.

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