From the Morning Memo:

A report released Thursday by Moody’s Investor Service found the state’s additional $15 million to local governments that have had power plants close is a “credit positive” to the communities.

The state budget the money for Dunkirk and Tonawanda to bolster revenue as part of the Electric Generation Facility Cessation Mitigation — a fund that helps overset losses in tax revenue when coal plants close.

The plants were the largest taxpayer for both communities, so the money also helps the local school districts and has a smaller impact on surrounding counties, the report found.

A community qualifies for the mitigation funding if they lose at least 20 percent in tax revenue due to the closure of an electric generation impact.

“Besides softening the impact of lost tax revenue, the funding infusion will also provide local governments with fiscal flexibility such as an opportunity to lessen the tax burden on residents, bolster reserves and/or address capital needs,” the report found.