News that the state’s credit rating had been downgraded put a damper on Gov. Sam Brownback and U.S. Pat Roberts’ Republican unity celebration Wednesday morning.
Standard & Poor’s lowered Kansas’ bond rating to AA from AA+, citing the state’s unbalanced budget caused by income tax cuts signed into law in 2012.
“The downgrades reflect our view of a structurally unbalanced budget, following state income tax cuts that have not been matched with offsetting ongoing expenditure cuts in the fiscal 2015 budget,” said Standard & Poor’s credit analyst David Hitchcock in a release.
S & P also downgraded the state’s appropriation-secured debt to AA- from AA.
The rating agency gave the state a “negative” outlook on both ratings and projects that the state will face serious budget woes by the end of fiscal year 2015.