While Moody’s Investors Service cited multiple years of operational decline and three additional fiscal years of budget gaps in giving Yonkers, N.Y., a multi-notch downgrade, a spokesman for the city also blamed a new state law.

“We are handcuffed. This is a clear case of the property tax cap having a negative effect on a municipality,” David Simpson, director of communications for Mayor Philip Amicone, said Tuesday.

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