There were times earlier this year, when it seemed that Gov. Bev. Perdue and the legislature were making everybody mad as they cut programs, laid off employees and raised taxes during the worst fiscal crisis since the 1930s. But North Carolina's leaders are getting decent marks from outsiders for their efforts.

The Pew Center On the States in a new study gives North Carolina a grade of "B-minus" grade in its chart of state's in fiscal peril putting the Tar Heel state in its top 20. (The Pew Center also gave South Carolina and Tennessee grades of B-minus, and Virginia received an A-minus.)

The worst grade went to troubled California and it noted that nine states are in deep trouble: Arizona, Florida, Illinois, Michigan, Nevada, New Jersey, Oregon, Rhode Island and Wisconsin, Rob Christensen reports. North Carolina also received some positive news recently when it sent a delegation to New York City for its annual meetings with the three major bond houses. North Carolina is one of only seven states that has a AAA bond rating from the major bond rating companies: Moody's Investors Service, Standard and Poor's and Fitch Ratings.

The other AAA states are Delaware, Maryland, Virginia, Georgia, Missouri, and Utah. Charles Perusse, the state budget director, said the bond analysts were complimentary of the the steps the governor took to cut back spending, and the actions of the legislature and the governor to reduce spending and raises taxes and in particular "the ability to make difficult decisions." They also liked the state's long-range planning efforts such as the commissions that are looking at ways to reduce government waste and moderning the tax system, Perusse said.

The three financial rating agencies have given North Carolina a AAA rating in the wake of a budget crisis.

The rating is the highest possible and the three rating agencies, Moody's, Standard & Poor's and Fitch Ratings affirmed the top score, which like an individual credit score is a measure of credit-worthiness and financial security. North Carolina is one of only seven states to have the top score.

"The Governor and the General Assembly have been effective in managing serious financial and budgetary pressure during this tough climate,” said state Treasurer Janet Cowell, who announced the ratings Tuesday afternoon. "It is a vote of confidence for the state that we have been able to maintain this rating through the first year of the economic crisis."

In the political world the possibility of having a rating lowered is often tossed out as a dire warning against, for example, furloughing state workers.

For Democrats, who control state government, the AAA rating could serve as evidence that a decision to cut spending and raise taxes was the best way to cope with a budget crisis and deep recession. Of course, the words "AAA bond rating" probably don't have the same power as "raised your taxes," which is what Republicans, who are aiming to control the legislature, will be pointing out frequently.

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