Milwaukee’s recent downgrade by Moody’s Investors Service became a campaign issue last week when Mayor Tom Barrett, who hopes to unseat Gov. Scott Walker in an upcoming recall election, blamed Walker for the action.
Barrett said state cuts in the shared revenue program were partially to blame. He also said Walker’s measures like cancelling a contract for a new train plant in the city have hurt employment efforts, according to published reports.
He added that Walker’s decision to use funds from the national settlement with banks to balance the state budget instead of aiding homeowners dealing with foreclosure also has hurt the city’s credit profile.
Walker’s campaign replied that Barrett “has only his failed tax-and-spend policies to blame” for the city’s position.
Moody’s downgraded Milwaukee’s credit to Aa2.