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Kansas budget woes weigh on state's credit ratings
Source: Reuters
Politics | Tue May 3, 2016 4:59pm EDT
Kansas budget woes weigh on state's credit ratings
Moody's Investors Service on Tuesday slapped a negative outlook on Kansas' Aa2 credit rating, citing the state's reliance on one-shot measures to balance its budget.
That followed action late last month by Standard & Poor's, which put Kansas' AA rating on review for a possible downgrade after the state lowered its revenue estimates for the current and next fiscal year by $228.7 million.
Governor Sam Brownback plans to divert $185 million in sales tax revenue from the state' highway fund to the general fund and delay a $96.5 million fiscal 2016 pension payment to help fill the gap.
"By continuing to balance its budget with unsustainable, nonrecurring resources, including pension underfunding, it is accumulating large and expensive long-term liabilities that it will be paying off for a long time," Moody's said in a statement.
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Kansas budget woes weigh on state's credit ratings
Moody's Investors Service on Tuesday slapped a negative outlook on Kansas' Aa2 credit rating, citing the state's reliance on one-shot measures to balance its budget.
That followed action late last month by Standard & Poor's, which put Kansas' AA rating on review for a possible downgrade after the state lowered its revenue estimates for the current and next fiscal year by $228.7 million.
Governor Sam Brownback plans to divert $185 million in sales tax revenue from the state' highway fund to the general fund and delay a $96.5 million fiscal 2016 pension payment to help fill the gap.
"By continuing to balance its budget with unsustainable, nonrecurring resources, including pension underfunding, it is accumulating large and expensive long-term liabilities that it will be paying off for a long time," Moody's said in a statement.
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Read more: http://www.reuters.com/article/us-kansas-budget-idUSKCN0XU29C
