|10-11-16 Education in the News|
NJ Spotlight--Moody’s Issues ‘Credit Negative’ in Response to Passage of TTF
Wall St. firm raises fiscal concerns about effect of tax cuts included in bill to replenish Transportation Trust Fund
Last week’s historic vote on legislation to replenish the Transportation Trust Fund was generally praised by lawmakers and state officials, who saw it as a welcome solution to a months-long impasse and a costly shutdown of road and bridge projects statewide.
But a major Wall Street firm, citing the legislation’s ultimate impact on the state budget, begs to differ.
In a report released yesterday, Moody’s Investment Service called the bill package “credit negative” and said that annual revenue loss stemming from the legislation will “worsen the state’s budget challenges” in the future. That comes just days after lawmakers passed the measures, which will infuse the beleaguered transportation fund with $16 billion over the next eight years. (According to Moody’s, a declaration of “credit positive” or “credit negative” does not connote a rating or outlook change, but is "indicative of the impact of a distinct event or development as one of many credit factors affecting the issuer.")
Chase Brush | October 11, 2016
Garden State Coalition of Schools