Fiscal cliff: Local governments brace for higher project costs

As leaders in Washington huddle Friday with one last shot at pulling the nation back from the fiscal cliff, Finance and Commerce examined one of many of the net effects of it: higher local costs to build roads, bridges and schools.

If the nation tumbles off the cliff, ultimately, local governments likely would be forced to pay higher interest rates to attract investors, the publication reports.

St. Louis Park’s City Controller Brian Swanson told the publication the city isn’t planning new debt issues soon, but when it does, the debt costs will be higher. “Obviously interest rates will increase, and that means our taxpayers pay a little more out of their pockets,” Swanson said.