TOPEKA, Kan. (AP) — Administration officials remain confident that Kansas will retain a strong credit rating despite a recent downgrade on previously issued bonds and concerns about the impact of cuts to state income tax rates.
Moody’s announced June 25 that it was downgrading nearly $200 million in outstanding debt in a Kansas Department of Commerce’s program known as Investments in Major Projects and Comprehensive Training, IMPACT.
Eileen Hawley, spokeswoman for Republican Gov. Sam Brownback, said Friday that the state’s bond health is good, confirmed by recent ratings by both Moody’s and Standard & Poor’s.
But House Minority Leader Paul Davis, a Lawrence Democrat, said any increased cost to borrowing money was another example of why income tax cuts enacted in 2012 and 2013 were wrong.