Moody’s Investors Service Downgrades Kansas, from “Stable” to “Negative”
Alert! Moody’s Investors Service considered the Kansas government stable. No longer. Moody’s just lowered their rating to “negative”. The negative outlook applies to approximately $1.5 billion of outstanding debt. The reason, in part: the dramatic increase in education funding forced by the Supreme Court. The report says, “Education funding increase legislation was enacted in connection with the state’s Montoy v. State school equity case. The funding legislation, which increased state school aid by about $1 billion during the fiscal 2006 through 2009 period in response to an order from the state’s Supreme Court, left Kansas little budgetary flexibility.” The report noted the school districts filed another lawsuit asking for even more money.
Connect with Benjamin Hodge at Facebook, Twitter, LinkedIn, The Kansas Progress, and LibertyLinked. Hodge is President of the State and Local Reform Group of Kansas. He served as one of seven at-large trustees at Johnson County Community College from 2005-’09, a member of the Kansas House from 2007-’08, a delegate to the Kansas Republican Party from 2009-’10, and was founder of the Overland Park Republican Party in 2011. His public policy record is recognized by Americans for Prosperity, the Kansas Association of Broadcasters, the Kansas Press Association, the Kansas Sunshine Coalition for Open Government, the NRA, Kansans for Life, and the Foundation for Individual Rights in Education (FIRE).