HARRISBURG, Pa. (AP) – Pennsylvania’s credit rating is taking a hit, another black eye in the nearly three-month budget stalemate between Democratic Gov. Tom Wolf and the Republican-controlled Legislature.
The credit rating agency Standard and Poor’s on Wednesday lowered its rating on Pennsylvania’s debt. That’s the second downgrade it has slapped on Pennsylvania in three years as budget makers have struggled to pull the state out of a stubborn post-recession deficit.
Pennsylvania is now rated even lower among states, sliding to the bottom five rated by Standard and Poor’s.
The downgrade means Pennsylvania will pay more to borrow money, potentially tens of millions of dollars a year.
The House and Senate are divided over whether to raise taxes as lawmakers look to borrow $1 billion or more to help bail the state out of a $2.2 billion projected deficit.