Now instead of being told that the tax cuts will be a shot of adrenaline to the KS economy, we are hearing that our tax cuts need to be matched with spending cuts. Tax cuts shouldn’t be a justification for further cuts to school districts.
The rating fell to AA, third-highest, from AA+ and the state’s appropriation-secured debt was dropped to AA- from AA, S&P said today. The outlook on both ratings is negative, which “reflects our belief that there will be additional budget pressure as income tax cuts scheduled in future years go into effect, or if midyear revenue shortfalls resume,” credit analyst David Hitchcock said.
Moody’s Investors Service in April cut the state’s debt rating for similar reasons. . .
“Breaking our addiction to high taxes and soaring debt is difficult, but necessary if we are to continue growing,” Brownback said in an e-mail today from his office in Topeka.