Moody’s Investor Service downgraded Glen Cove’s municipal credit outlook from stable to negative over concerns about a potential budget hole, according to Newsday.
A downgrade signals financial problems and typically leads to higher borrowing costs for a municipality.
Moody’s said in a report last week that Glen Cove is expecting “up to $900,000” in state and county funds later this year, but “absent federal support … these revenue are not likely to materialize.”
Glen Cove controller Michael Piccirillo acknowledged that the city is bracing for a 20 percent reduction in a pair of state and county aid programs.
Sales tax is a major source for the $4 million that Glen Cove typically receives from the state and county, he said. The coronavirus pandemic has significantly reduced economic activity in New York, resulting in lower sales tax generation. [Newsday] — Dennis Lynch