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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Janet Cowell cautioned legislators about furloughs today.

In a press release, the state treasurer warned legislators about several fixes for the state budget shortfall that could hurt the state's AAA bond rating.

She said putting off debt payments or depleting the state's rainy day fund could lead rating services such as Moody's to lower the state's financial grade, leading to higher interest rates for public bonds.

Among the short-term fixes she warned could hurt the state: Ordering state workers to take furloughs.

The issue has been a hot topic of late, with Gov. Beverly Perdue saying she does not want them and House Speaker Joe Hackney saying they should be on the table. A bill has been introduced that would give Perdue the authority.

A staffer for Cowell said the release was not meant to take a stance on the issue, but simply to inform legislators.

U.S. House Speaker Nancy Pelosi claims a stimulus package would create 132,350 jobs in North Carolina.

Pelosi and Mark Zandi, chief economist of Moody's Economy.com and former adviser to Sen. John McCain's presidential campaign, released an analysis of the package this afternoon.

Overall, their analysis claims that the stimulus package would create 4 million jobs and lower the unemployment rate by 2.2 percentage points. 

Its state-by-state figures includes projections of 132,350 new jobs in North Carolina and a reduction of the state's unemployment rate by 1.6 percentage points.

That is compared to what the number of jobs and the unemployment rate would be in 2010 without the stimulus package. 

The National Republican Senatorial Committee has a new ad attacking Democratic candidate Kay Hagan's record as a state senator.

What it says: The ad shows images of Kay Hagan with graphics similar to the Olympics. Narrator: "What if they gave gold medals for financial irresponsibility?" Announcer: "The gold medal goes to Kay Hagan." Narrator: "Budget writer Kay Hagan helped double state debt. The gold for government waste?" Sports announcer: "Kay Hagan." Narrator: "Hagan's budgets pushed North Carolina to the highest taxes in the Southeast. And the gold for twisting the truth?" Sports announcer: "Kay Hagan." Narrator: "The press said Hagan’s TV ad was 'overstated, inaccurate.'" Sports announcer: "Kay Hagan." Narrator: "The National Republican Senatorial Committee is responsible for the content of this ad." The ad says "Highest Taxes in Southeast 2006."

The background: The ad raises three issues: high taxes, state debt and a previous Hagan ad.

TAXES: Every year, the Tax Foundation, a Washington-based think tank, analyzes the combined state and local tax burden in all 50 states.

According to its overall ranking, North Carolina had the 17th highest burden in 2006.

The think tank does not break out the rankings by region, but the John Locke Foundation, a conservative think tank in Raleigh, has compared those numbers to other states in the region.

The Locke Foundation defines the Southeast as Florida, Georgia, North Carolina, South Carolina, Tennessee and Virginia.

The U.S. Bureau of Economic Analysis, the only federal agency to define the Southeast, includes those states as well as Alabama, Arkansas, Kentucky, Louisiana, Mississippi and West Virginia.

If those states were included, North Carolina would have been second highest in 2006, after Arkansas.

DEBT: The state constitution requires the legislature to balance the budget, so North Carolina's debt does not come from annual budget deficits.

Instead, the debt comes from bonds issued by the state to pave highways, build jails and college buildings and pay for other projects. The bonds are backed by the state's expected tax revenue.

From 2002 to 2007, Hagan was a co-chairwoman of the Senate Appropriations committee.

During those five years, the state's overall debt went from $3.5 billion to $6.9 billion — nearly doubling.

However, the increased debt has not hurt North Carolina's credit rating. The three agencies that rate government bonds — Moody's, Fitch and Standard & Poor's — each give it a top-tier ranking.

North Carolina is one of only seven states to have top rankings from all three.

HAGAN'S ADS: In an ad run in August, Hagan's campaign claimed that she "reach(ed) across party lines to ban driver's licenses for illegal immigrants."

A previous Claims Department by the N&O found that claim overstated the supporting role she played in that bill and the Senate Democrats' previous opposition to stronger proposals from Republicans.

The ad's "account of Hagan's role on the driver's license bill is overstated and inaccurate," the article noted.

Is it accurate? Yes and no. The claims about state debt and Hagan's previous ad are true. But the definition of the Southeast used by the John Locke Foundation is bizarre. Though the ad correctly cites the foundation's research, the claim is misleading.

— Ryan Teague Beckwith