SALISBURY — The city of Salisbury’s website boasts that it is “America’s first 10 gig city,” noting that anyone who connects to the municipal Fibrant broadband network has access to Internet connection speeds of up to 10 gigabits per second. But a technology analyst questions the wisdom of city leaders gambling with taxpayer funding over such a risky endeavor.
SALISBURY — This spring, Moody’s downgraded Salisbury’s bond rating, citing debts by its Fibrant broadband service. Moody’s notes that Salisbury borrowed $7.6 million from its water and sewer fund to support the Fibrant fiberoptic network. The report also points out that while Salisbury is making 1 percent interest payments on the borrowed funds, it isn’t repaying the principal.
RALEIGH — Recent media reports have floated the notion that the state’s business community is responsible for retiring $2.5 billion in debt to the federal government for underfunded unemployment benefits. But according to state government's annual financial report, there is no dispute about the identity of the borrower. "In February 2009, because of depleted cash balances,” states the 2012 report, “the State began borrowing from the U.S. Treasury to ensure the uninterrupted payment of State unemployment benefits.”
Reactions from state politicians to a downgrade of North Carolina's bond rating proves that a previous description of lawmakers as “dimwits” fits several of them uncomfortably well.
