Brownback’s Tax Cuts Prompt S&P to Reduce Kansas’s Rating

Kansas’s credit rating was reduced by Standard & Poor’s, which cited the effects of income-tax cuts endorsed by Republican Governor Sam Brownback that weren’t matched by less spending.

The rating fell to AA, third-highest, from AA+ and the state’s appropriation-secured debt was dropped to AA- from AA, S&P said today. The outlook on both ratings is negative, which “reflects our belief that there will be additional budget pressure as income tax cuts scheduled in future years go into effect, or if midyear revenue shortfalls resume,” credit analyst David Hitchcock said.