State Treasurer John Kennedy says Louisiana is in danger of seeing its credit score drop from stable to negative. He says the report, from Moody’s Investors Service, pointed to Louisiana’s multiple fiscal challenges including the $330 million dollar revenue forecast drop.
But Kennedy says while a downgrade is not certain, it’ll be up to the legislature to make some changes next session. "They'll have to stop deficit spending. They'll need to start spending on what they need," said Kennedy.
He believes Moody's, a major credit rating agency, has essentially fired a warning shot that the state may face a downgrade, if it's financial condition isn't improved. In it's report, the agency notes the state's seven year run of expenses outpacing revenue.