From Stop Prop A
San Diego, CA – “San Diegans do love their parks, but our parks could be at risk if Prop A passes,” begins District 7 Councilmember Marti Emerald in a taped statement released today by the No on Proposition A campaign. Emerald cautions San Diego voters against voting for the measure, which State Controller John Chiang, State Treasurer Bill Lockyer, San Diego’s Independent Budget Analyst and Fitch Ratings Company have all stated will cost the City of San Diego hundreds of millions of dollars each year.
Emerald questions the impact of these lost state grant monies on both public safety and recreation projects around the city, as well as other vital services. Her comments come on the heels of a statement released earlier this week by Fitch Ratings that indicated Prop A’s approval would expose the City’s General Fund and “place downward pressure on the city’s bond ratings,” hampering its ability to complete projects of all kinds.
“Protect our quality of life. Protect public safety. Vote no on Prop A,” Emerald concludes.
View Marti Emerald’s full video statement at www.StopPropA.org/Emerald.
Voter Approval of Proposition A on the June 5 Ballot could cause the City of San Diego’s Bond Ratings to Drop
San Diego, CA – Fitch Ratings, a global rating agency dedicated to scoring agencies’ financial strength, has cautioned the City of San Diego that passage of Proposition A will present severe fiscal consequences to the city, currently rated with an A+ across most bond categories.
“Fitch notes that voter approval of a June 5, 2012 ballot measure to prohibit project labor agreements could adversely impact the city’s receipt of capital grant funding from the state ($194 million over the last two years), thereby creating more need for general fund support of capital projects,” said Fitch in a press release dated May 29, 2012.
In a section of the release titled “What Could Trigger a Rating Action,” Fitch notes that “Additional general fund support for debt… if state funding ceases due to possible voter approval of a ban on project labor agreements, could place downward pressure on the city’s bond ratings.”
These warnings echo statements repeatedly made by the No on Prop A campaign, as well as Donna Frye in an May 21 OpEd in the Voice of San Diego.
“In these harsh economic times, any action that would adversely impact the city’s bond rating is simply unconscionable,” said Scott Barnett, President, San Diego Taxpayers Advocate. “With the questionable benefits and legality of Proposition A, this warning from Fitch should settle the debate once and for all in favor of defeating this ill-conceived measure.”
“I have said for weeks San Diego Taxpayers need to be aware of the devastating financial impact Proposition A will have on our community,” added Stephen Whitburn, Member of the Greater San Diego Business Association. “The prospective loss of state grant funding, coupled with the possible downgrading of city bond ratings is exactly the kind of consequences voters must be aware of before casting their vote on Proposition A.”