It was not surprising that Standard & Poor’s Rating Services placed Kansas on its “credit watch” list. Kansas’ credit rating had previously been revised downward, and the state’s fiscal problems have continued to get worse, with the latest revenue estimates projecting budget shortfalls of about $300 million this fiscal year and next. S&P indicated there was “at least a one-in-two possibility” it would lower the state’s AA credit rating, especially if the Legislature and Gov. Sam Brownback plug the budget with one-time money. Last month, Moody’s Investor Services announced that Brownback’s 3 percent funding cut to state universities was a “credit negative” for the universities. His proposals to cover next year’s budget hole include additional cuts to state universities. – Phillip Brownlee
Premium content for only $0.99
For the most comprehensive local coverage, subscribe today.