Costa Statement on Credit Rating Downgrade

Harrisburg – September 20, 2017 – Senate Democratic Leader Jay Costa (D-Allegheny) released the following statement today concerning the downgrade of Pennsylvania’s credit rating by S & P Global Ratings due to failure to adopt a revenue plan with sufficient recurring revenues to balance the state’s budget. 

Instead, House Republicans voted to approved a plan that included $630 million in special fund transfers, which resulted directly in this credit downgrade.   

Costa’s statement follows:

“S & P took a step that many have been predicting would come for months, absent concerted action on a responsible and sustainable budget.

“Given the House Republicans’ inaction for months followed by the passage of an irresponsible plan, it is not surprising that Pennsylvania’s credit rating was downgraded. Their plan was revenue deficient and would fail to put Pennsylvania on solid financial footing. 

“After review of the House Republican plan – including the $630 million in fund transfers – S & P took decisive action to downgrade our credit rating. 

“The Senate passed a reasonable plan that, if enacted, would have avoided a credit downgrade.  The action today was predictable.  We already know that past downgrades are costing the state tens of millions of dollars annually in additional interest payments, and this downgrade will only add more.

“All parties need to return to the bargaining table and work through details of a plan that will sustain our budgetary needs.”

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