PITTSBURGH TRIBUNE: The proposed state budget, if passed as written, could hurt Pennsylvania’s borrowing ability, a major credit analyst warned on Monday.
Standard & Poor’s analyst John Sugen said a combination of inaction on pension reform, a proposed reliance on one-time revenues and poor revenue collections leading up to the 2014-15 budget season could result in a credit downgrade of the state’s $545 million in general obligation bonds.
The agency looks for a “structural balance” in the budget where recurring revenues match expenditures, Sugen said. This next proposal, Sugen said, has “a significant amount of one-time revenues and one-time expenditures.” … (more)
