Suffolk County Executive Steve Bellone has announced that credit rating agency, S&P Global Ratings, has upgraded the County’s bond rating two notches to an 'A+' with a stable outlook. The previous rating was 'A-' with a positive outlook.
The upgrade is in recognition of the significant steps the administration has taken to improve the County’s finances including continued government efficiency, fiscal discipline, and operational reforms and building reserves that protect taxpayers and provide a cushion against future economic downturns.
“This double bond rating upgrade is a direct result of my administration’s long-term plan to shore up Suffolk County’s finances for years to come,” said Suffolk County Executive Steve Bellone. “This is no coincidence – our years of hard work implementing sensible fiscal reforms and making tough decisions to protect taxpayers continues to move County finances in a positive and sustainable direction. I want to thank my partners in the County Legislature for working together in a bi-partisan fashion, including last year’s unanimous adoption of the budget.”
According to S&P, the bond upgrade also reflects the significant and continual financial management and budgeting practices, including the use of surpluses in ways that will allow the County to maintain more stable finances in the long term.
Over the course of the last two years, Suffolk County has taken several steps to mitigate the financial emergency caused by the COVID-19 pandemic and protect taxpayers. In his most recently submitted operating budget, County Executive Bellone froze the County Tax for the tenth year in a row and included several financial measures, which S&P viewed positively.
These fiscally responsible actions are helping lower debt service costs and eliminate the need for short-term borrowings, both of which will ultimately save taxpayers tens of millions of dollars.
Suffolk County Legislature Presiding Officer Kevin McCaffrey said: "The recent upgrade in Suffolk County's Bond Rating is evidence that Suffolk County is on the right path to long term financial stability. The Suffolk County Legislature will continue to work with County Executive Bellone to make proper investments in public safety, infrastructure, economic development and our environment - all while keeping our County an affordable place to live. We are pleased that rating agencies are recognizing our commitment to a strong fiscal policy."
Suffolk County Legislature Minority Leader Jason Richberg said: “With the help of the Majority Leader Schumer and the county’s legislature and administration working in concert, we were able to receive a significant bond upgrade. This is no small feat and it shows that we’re moving forward as a county, but we will only stay on this path if we all continue to work together towards real, tangible solutions. As we move into the county’s budget process over the next several weeks, this is a great sign that we are headed in the right direction.”
At the start of his administration, County Executive Bellone faced an unprecedented accumulated deficit of approximately $500 million and a $200 million annual structural budget gap.
However, working together with the Legislature, County Executive Bellone was able to take the steps necessary to improve the County’s financial standing and eliminate both the deficit and the structural budget gap. The County consolidated departments, worked with labor unions to obtain significant healthcare expense savings and implemented best practice financial reforms and performance management measures to make government more efficient.
The last time Suffolk County was A+ Stable with S&P was June of 2012, before Superstorm Sandy devastated municipalities across the region.
“Government is at its finest when elected officials work together in the best interests of the people,” said County Executive Steve Bellone. “While dealing with unprecedented financial crises from Superstorm Sandy to the COVID-19 pandemic, my administration has always remained laser focused on making the necessary fiscal reforms and sensible decisions to protect taxpayers and put Suffolk County on the right track.”