Pennsylvania’s bond rating may be downgraded as its finances erode and the state risks enacting a budget that leaves it on track to spend more than it brings in, S&P Global Ratings said.
S&P placed the Keystone State’s AA- rating on negative watch after it failed to enact a spending plan before the fiscal year began on July 1. The Senate and House have since passed a $32 billion budget that falls $2 billion short in revenue. Governor Tom Wolf, a Democrat, has 10 days to sign, veto or let it become law without his signature. It’s not clear whether legislators will agree on a revenue-boosting package by July 10, S&P said.