TOPEKA, Kan. (AP) – A national credit rating service says there’s at least a 50-50 chance it could lower Kansas’ AA credit rating later this year, depending on how the Legislature handles the state’s current budget crisis.
The Kansas City Star reports Standard and Poor’s Rating Services said Monday it had placed Kansas on a “credit watch” because of the state’s budget shortfall and concerns about Gov. Sam Brownback’s proposal for filling the gap.
New revenue estimates for the state recently projected a $290 million budget shortfall through June 2017.
Brownback spokeswoman Eileen Hawley says the governor has presented three options for the Legislature to consider in balancing the budget.
The rating service says it will resolve the credit watch in 90 days, based on the Legislature’s actions.