Subject: Fwd: Roundup: Pennsylvania Faces Fiscal Cliff
From: "Wei, Shu-Yen" <[email-masked]>
To: Comm_D <[email-masked]>
Date: Thu, 12 May 2016 13:32:35 -0700

Begin forwarded message:

From: Brandon Cwalina <[email-masked]<mailto:[email-masked]>>
Date: May 12, 2016 at 4:03:48 PM EDT
To: <[email-masked]<mailto:[email-masked]>>
Subject: Roundup: Pennsylvania Faces Fiscal Cliff
Reply-To: <[email-masked]<mailto:[email-masked]>>

[PA Dems]

FOR IMMEDIATE RELEASE

May 12, 2016

CONTACT: Brandon Cwalina, [email-masked]<mailto:[email-masked]>

ROUNDUP: PENNSYLVANIA FACES FISCAL CLIFF

PENNSYLVANIA -- As if 5 times wasn’t enough, Pennsylvania is facing yet another credit downgrade if lawmakers fail to pass a responsible and fiscally sound budget on time. Credit rating agencies like S&P and Moody’s have warned of the downgrades Pennsylvania will receive if another budget impasse occurs. Auditor General Eugene DePasquale warned of “backdoor tax increases” if Pennsylvania’s credit rating decreases. Pennsylvania cannot afford another budget impasse.

Read what another budget impasse could mean for Pennsylvanians:

Philadelphia Inquirer: S&P threatens to downgrade Pa.'s credit rating<http://act.padems.com/page/m/5dcdb8ff/2d698ac4/347434fe/4750788d/517240256/VEsH/>

Low-rated borrowers typically have to pay bond buyers and other lenders extra, because they are considered a little more likely to default on their debts. Pennsylvania taxpayers had to pay investors an extra 0.52 percent interest to sell bonds as of last month, more than any state except New Jersey and Illinois, according to a report by PNC Financial Services Group.

Pennlive: Moody's lowers credit outlook for Pennsylvania to "negative," citing budget impasse<http://act.padems.com/page/m/5dcdb8ff/2d698ac4/347434fe/4750788c/517240256/VEsE/>

The change did not have any immediate impact on the state's Aa3 credit rating - already one of the worst among the 50 states. But it is a warning shot that further downgrades could follow, according to the ratings service. And another downgrade, analysts trading in public-sector debt told PennLive Monday, could end up costing Pennsylvanians about $10 million or more per year in extra debt service on the nearly $2 billion in new bonds the state plans to float this year.

Fox 43: DePasquale: Budget impasse means ‘backdoor’ taxes<http://act.padems.com/page/m/5dcdb8ff/2d698ac4/347434fe/4750788b/517240256/VEsF/>

"Let me be very blunt about this," Eugene DePasquale said. "If the structural deficit is not dealt with this year, and we have another budget impasse, the rating agencies will downgrade Pennsylvania again.” [...] "Every road project, every school construction project, every time a school district or the state wants to take out a loan to do something proactive, that money will not go as far," DePasquale says.

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