COLUMBIA, S.C. (WACH, AP) -- South Carolina's financial leaders are meeting with Moody's Investor Service as the rating agency considers whether the national debt crisis should cause the state to lose its top credit rating.
Wednesday's meeting has the state's financial leaders briefing Moody's on the state's finances and economic outlook.
Gov. Nikki Haley told analysts with Moody's on Wednesday that the state's goal in 2012 is have the most stable finances ever.
"As we go forward when we look at the issues that face South Carolina, I think there are two main issues that directly affect the stability and solvency of where we want to go in the state and one is Medicaid and how we are going to deal with Medicaid and one is retirement system," Gov. Nikki Haley said.
South Carolina Comptroller Richard Eckstrom says the issue about funding retirement has been left overlooked for too long.
"...By doing so they've forced us into an almost unmanageable predicament denying or refusing to address this problem won't make it go away doing that has only made it worse frankly by failing to act as long as it did the state may have forced itself into having to restructure the entire retirement plan."
However, Eckstrom said the state finished the current fiscal year in June with a surplus.
"As things stand now it looks as if current year revenues are coming in almost, almost 7 percent over the last fiscal year, current year against last fiscal year, much of that improvement has come from individual income tax collections," Eckstrom added.
The term debt ceiling might not resonate much on Main Street, South Carolina, but the debt debate raging in Washington is just as important there as it is in the Palmetto State.
Last week, Moody's Investors Service warned that if the federal government didn't deal with raising the nation's $14.7 trillion debt limit and defaulted, it would likely lower its AAA ratings for Maryland, New Mexico, South Carolina, Tennessee and Virginia.
Earlier this month, Moody's placed the U.S. government's credit rating under review for a possible downgrade, citing a small but rising risk that the government will default on its debt as Congress and the White House wrestle over raising the nation's $14.3 trillion borrowing limit.
South Carolina had planned to meet with Moody's analysts in June but that was canceled when a plane had mechanical problems.
Which party is more to blame for the lack of a solution for the nation's debt crisis? Vote in our poll below and leave a comment to join the discussion.
(The Associated Press contributed to this report.)
TV Station Profiles & Public Inspection Files forWACH