Disney fiasco could have ominous consequences for Florida's government, major credit agency warn

[Yo_Mama_Been_Loggin]

Late on Thursday, Fitch Ratings—one of the “Big Three” credit rating agencies—sent a warning to Florida: Dissolving Disney’s special district without careful provision for its outstanding debt could threaten the state’s financial reputation.

Florida formed the Reedy Creek Improvement District (RCID) with 1967’s Reedy Creek Act, which granted an area of over 25,000 acres in the middle of the state the wide-ranging powers of a municipal government. The district owns and operates its own public services, including a large fire department, and can issue tax-exempt bonds, taking on debt to finance infrastructure projects. That debt now amounts to nearly $1 billion.

Last Friday, Florida Gov. Ron DeSantis signed legislation ordering the dissolution of several special districts in the state, including Reedy Creek. The action came as the state feuds with Disney over the company’s criticism of its Parental Rights in Education law.

The law, known popularly as “Don’t Say Gay,” has led a wave of similar legislative proposals across the U.S. aimed at limiting discussion of LGBTQIA+ issues in school settings.

https://finance.yahoo.com/news/disney-fiasco-could-ominous-consequences-185401161.html

[Cha]

1. GO TEAM DISNEY!!💕🤷‍♂️🤞🤞😎

💙💛

[kimbutgar]

2. I hope this destroys Desatan

[sakabatou]

3. DeSatan: Like I give a shit. I'm gonna ruin Florida anyway!

[Hekate]

4. Who could have possibly predicted this?!

[ProudMNDemocrat]

5. Thinking with the LITTLE head, Ronny boy?

[ShazzieB]

6. LOLOLOLOLOLOL!

This just gets better and better!

[ashredux]

7. The GOP Goons are Not The Best And The Brightest

[LetMyPeopleVote]

8. Rating agency warns Disney debt conflict could 'weaken' other Florida government bonds

The rating agencies are worried about DeathSantis' stupid stunt. This is going to cost the state of Florida and local governments a great deal. If the rating agencies down grade Florida's credit, the cost of borrowing goes up

Link to tweet

https://www.miamiherald.com/news/politics-government/state-politics/article260873762.html

One of the nation’s leading bond rating agencies warned Thursday that if the state of Florida doesn’t resolve a conflict over its decision to repeal Walt Disney World’s Reedy Creek Improvement District and its obligation to investors, the move could harm the financial standing of other Florida governments.

Fitch Ratings posted the alert late Thursday on its Fitch Wire web site, nearly a week after Gov. Ron DeSantis signed into law the measure dissolving the special taxing district that governs Disney property by June 1, 2023. Reedy Creek Improvement District holds nearly $1 billion in bond debt and last week Fitch issued a “negative watch” because of the uncertainty around how that debt will be paid and by whom......

A 1967 state law that established the Reedy Creek Improvement District on 39 square miles of Disney property gave the district the power to issue bonds and tax itself to build roads, sewers and utilities, establish its police and fire departments, and regulate its construction. In exchange, the state pledged “it will not limit or alter the rights of the District...until all such bonds together with interest thereon...are fully met and discharged.”

The law dissolving the district does not address how the bonds will be paid, but on Friday when he signed the measure, DeSantis said: “We’re going to take care of all that. Don’t worry. We have everything thought out. Don’t let anyone tell you that somehow Disney is going to get a tax cut out of this. They’re going to pay more taxes as a result of that.”

There is no easy way of fixing this issue without endangering the credit of the state