CARSON CITY, Nev. (AP) — A major credit ratings agency is praising a recently approved bill allowing local governments in Nevada to tweak contracts with their unions during economic downturns.
Moody's Investor Services said in a weekly newsletter released Wednesday that passage of SB168 was a "credit positive" because it gives more financial flexibility to local governments.
The bill allows local governments to renegotiate union contracts if revenue drops more than five percent in a year, and to fence off a quarter of budgeted spending from union negotiations. It doesn't affect school districts.
Moody's said the newly approved bill would give cash-strapped local governments like North Las Vegas more control and flexibility in future negotiations with employee unions.
Democrats and union lobbyists strongly opposed the bill during the legislative session.
