S&P downgrades water district

Less tax revenue to spend translated into a credit downgrade by ratings agency Standard and Poor's for the South Florida Water Management District recently. S&P lowered the credit rating for the district from AAA to AA+ following a review taking into account the $120 million reduction imposed by the Florida Legislature and supported by Gov. Rick Scott.

The legislation cut $210 million from the budgets of four of the five water management districts. South Florida, the biggest of the five, took the biggest hit.

In a statement, S&P credit analyst John Sugden-Castillo, says: "The downgrade reflects legislative changes that we believe have significantly reduced the district's financial flexibility.”

But district spokesman Randy Smith responded with a statement, saying, “The district has no plans to issue further debt in the foreseeable future and continues to place its credit worthiness and payment of existing debt as one of the agency's highest priorities.”

Scott says he stands behind the decision to the districts' funding. "I think we absolutely did the right thing," Scott told the News Service of Florida. "We're making sure that all of the water management districts go back to their core missions. That was $210 million that will go back to taxpayers."