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Kansas Budget May Be Stressed Says Bond Rating Agency

A major bond-rating agency says the budget problems in Kansas are getting worse and indicates budget stress.

Standard and Poor's issued its latest report on the Kansas budget Friday and says much of the concern comes from a court ruling on school funding.

S&P says a ruling from a three-judge Shawnee County Court panel could cost the state another $500 million a year in school funding.

The report says if that amount is upheld on appeal to the state Supreme Court that could “raise additional obstacles for Kansas to achieve structural budget balance” next fiscal year.

S&P also said that Gov. Sam Brownback's plan to address a $279 million shortfall in the current budget doesn't "appear to significantly address the mismatch between recurring revenues and expenditures."

State officials predict a $648 million budget hole when the new fiscal year starts in July.

Both S&P and Moody’s downgraded the state’s bond rating in August.

S&P did not touch the state’s bond rating in its report Friday.
 

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