Bangkok--21 Apr--Standard & Poor's
The current economic and budget climate for U.S. states is likely to translate into more borrowing, according to a report, "State Budget Roundup: Lingering Gaps And The End of The Stimulus Dominate Deliberations," published today by Standard & Poor's Ratings Services.
As U.S. states consider their fiscal 2011 budgets, they are facing the end of federal stimulus funding before revenue recovery has taken hold in a meaningful way. They also face budget gaps for fiscal 2011 that Standard & Poor's expects to exceed $100 billion, according to the report, which surveys the status of all 50 states' budget plans.
"We expect that the effect of the recession on revenues will likely remain for most of fiscal 2011, particularly if economists' projections of a slow recovery prove accurate," said credit analyst Robin Prunty. "As in prior economic cycles, we expect that revenues for states may continue to drop well after an economic recovery begins, which can also make budget stability hard to achieve and maintain."
The report is available to RatingsDirect on the Global Credit Portal subscribers at www.globalcreditportal.com and RatingsDirect subscribers at www.ratingsdirect.com. If you are not a RatingsDirect subscriber, you may purchase a copy of the report by calling (1) 212-438-7280 or sending an e-mail to
[email protected]. Ratings information can also be found on Standard & Poor's public Web site by using the Ratings search box located in the left column at www.standardandpoors.com. Members of the media may request a copy of this report by contacting the media representative provided.
Media Contact:
Ana Sandoval, New York (1) 212-438-5095,
[email protected]
Analyst Contacts:
Robin Prunty, New York (1) 212-438-2081
Horacio Aldrete-Sanchez, Dallas (1) 214-871-1426