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Grossman: Downgrade, Debt Crisis Could Hurt Massachusetts

BOSTON (CBS/AP) — A day after one of the world’s three major credit rating agencies made the unprecedented move to cut the U.S. credit rating, Massachusetts leaders say the state is apt to feel a ripple effect from the decision.

Friday, Standard & Poor’s said there is too big a gulf between Republicans and
Democrats when it comes to dealing with debt, so it’s giving the government a downgrade. S & P bumped the U.S. credit rating down a notch to AA+ from the top status it’s held since 1917.

It’s the country’s first downgrade ever.

WBZ-TV’s Jim Smith reports

While nationally, Republicans and Democrats immediately blamed each other, here in Massachusetts, State Treasurer Steve Grossman said both parties share the blame. He calls the downgrade “a shot across the bow” for Democrats and Republicans.

WBZ NewsRadio 1030’s Kim Tunnicliffe reports

Grossman says while painful cuts need to be made to solve the debt crisis, the issue of possible tax increases should not be taken off the table.

“To cut $4 billion over a 10-year period is going to have a serious impact here in Massachusetts,” said Grossman.

Related: CBS News: Who’s To Blame?

One U.S. Senator, Republican Mark Kirk of Illinois, called for the president to bring Congress back from its August recess to try and address the issues raised by S&P’s report.

(TM and © Copyright 2011 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2011 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)


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