Michael Calhoun

CLAYTON (KMOX) – The national debt ceiling debate could have a profound effect on town halls across the country.

Moody’s Investors Service has threatened a downgrade of the nation’s long-term credit rating, which could impact the state of Missouri’s triple-A rating.

It could also leave local governments in danger of a downgrade.

“I’m concerned about it, but I’m hopeful that it comes to a reasonable resolution to raise the debt limit,” said St. Louis County Executive Charlie Dooley, who has long touted the County’s triple-A bond rating.

He said that if the County’s rating takes a hit, there would be higher interest payments and less cash to spend on people and projects.

Perhaps of even bigger concern is a threat to remove the tax exempt status for new municipal bonds, which would net the feds an extra $200 billion a year but create difficulty for local governments and school districts.

Copyright KMOX Radio

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