Post by Logan on May 6, 2016 1:27:22 GMT -6
A bond rating service adjusted the outlook Tuesday from stable to negative on Kansas highway revenue bonds after state lawmakers endorsed a deficit-reduction plan making use of $185 million in sales tax revenue earmarked for transportation projects.
Moody’s Investors Service also shifted the general outlook for the state of Kansas to negative, while holding steady with the Aa2 rating. The service blamed state financial problems caused in part by state income tax reductions, as well as a history of underfunding the state pension plan.
“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,” the rating agency said.
In the budget bill sent by the House and Senate on Monday to Gov. Sam Brownback, a state payment of about $100 million to the Kansas Public Employees Retirement System would be postponed. It also would pull $185 million from the Kansas Department of Transportation.
Read more: cjonline.com/news/2016-05-03/moodys-hits-kansas-negative-reports-tied-kdot-raids-tax-cuts
Moody’s Investors Service also shifted the general outlook for the state of Kansas to negative, while holding steady with the Aa2 rating. The service blamed state financial problems caused in part by state income tax reductions, as well as a history of underfunding the state pension plan.
“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,” the rating agency said.
In the budget bill sent by the House and Senate on Monday to Gov. Sam Brownback, a state payment of about $100 million to the Kansas Public Employees Retirement System would be postponed. It also would pull $185 million from the Kansas Department of Transportation.
Read more: cjonline.com/news/2016-05-03/moodys-hits-kansas-negative-reports-tied-kdot-raids-tax-cuts