Article: State's bond rating lowered

State's bond rating lowered

S&P third agency to downgrade

By AVRUM LANK of the Journal Sentinel staff

Saturday, May 25, 2002

Standard & Poor's Friday became the third bond agency since August to lower Wisconsin's rating.

The action came as state legislators haggle over how to close a more than $1 billion gap in the current budget, the result of falling tax receipts in a soft economy. In addition, the state has one of the lowest financial reserve funds in the nation.

"The state's planned drawdown of budgetary reserves, limited revenue-generating flexibility and slim budgetary reserves, and a negative $1.2 billion (general) fund balance are all contributing factors to the rating downgrade," ...

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