ICYMI: S&P: Pennsylvania’s Fiscal Challenges Remain Following Line-Item Veto Of Budget Bill

first_img SHARE Email Facebook Twitter Budget News,  Press Release Harrisburg, PA – Yesterday, S&P issued a warning that Pennsylvania’s fiscal challenges remain and the Republican legislature must act responsibly to balance Pennsylvania’s budget. In their release, S&P said:“Despite six months of deliberations, Pennsylvania’s budget deliberations continue, leaving it uncertain whether legislators will act to close the state’s budget gap… The $30.3 billion budget passed by both the house and senate is, in our view, structurally unbalanced and does not include pension reforms negotiated in the previously agreed-upon budget framework. As proposed, the budget had a $500 million budget gap for fiscal 2016 and left a $2 billion budget gap for fiscal 2017… As the state’s longest running budget impasse persists, the question of lawmakers’ political willingness to address fiscal challenges remains.”You can read S&P’s full release below:Bulletin: Pennsylvania’s Fiscal Challenges Remain Following Line-Item Veto Of Budget BillCHICAGO (Standard & Poor’s) Dec. 29, 2015 — Despite six months of deliberations, Pennsylvania’s budget deliberations continue, leaving it uncertain whether legislators will act to close the state’s budget gap or address its long-term pension liabilities. Our AA-/Stable general obligation (GO) rating on the Pennsylvania is still unchanged despite the political gridlock because of the state’s demonstrated willingness to honor its debt obligations. We are also waiting to see how further deliberations play out as legislators have still to determine a revenue package for fiscal 2016.On Dec. 29, 2015, Gov. Tom Wolf announced that he would line-item veto the legislature’s budget while providing emergency funding to public schools and social service providers. The $30.3 billion budget passed by both the house and senate is, in our view, structurally unbalanced and does not include pension reforms negotiated in the previously agreed-upon budget framework. As proposed, the budget had a $500 million budget gap for fiscal 2016 and left a $2 billion budget gap for fiscal 2017. While we have previously stated that we could consider a negative rating action or outlook if the state fails to address its budgetary imbalance or reverses course on addressing its pension liabilities, we are waiting for further developments on a corresponding revenue package and to better understand whether a pension reform will be part of a final budget.The release of emergency aid to schools will help relieve Pennsylvania schools’ cash flow pressures, but we have not reinstated our rating on the Pennsylvania state credit enhancement program because we still consider state aid payments to be unreliable given the state’s chronic failure to pass an on-time budget (see “Standard & Poor’s Analysis Of Credit Enhancement Programs Is More Than A Mechanical Exercise,” published Dec. 14, 2015). We previously viewed the hold-up of state funding as motivation for lawmakers to pass a budget. The emergency school funding measures gives more time for the budget deliberations to continue.As the state’s longest running budget impasse persists, the question of lawmakers’ political willingness to address fiscal challenges remains. Past protracted debates have not always resulted in balanced budgets. A lack of reforms in the current budget year could add to the growing revenue and expenditure misalignment and increased pension funding pressures in fiscal 2017. For the next fiscal year, the governor has discussed a personal income tax increase, coupled with a new severance tax, which were rejected by legislators this fall. It is possible that future revenue enhancements and pension reforms could face politically contentious negotiations yet again given that both sides were far apart on the issues not addressed in the current budget. While we have not changed our rating based on the state’s political gridlock, continued structural imbalance or lack of progress in funding its pensions could result in a rating action. We have determined, based solely on the developments described herein, that no rating actions are currently warranted. Only a rating committee may determine a rating action and, as these developments were not viewed as material to the ratings, neither they nor this report were reviewed by a rating committee.Like Governor Tom Wolf on Facebook: Facebook.com/GovernorWolf December 30, 2015center_img ICYMI: S&P: Pennsylvania’s Fiscal Challenges Remain Following Line-Item Veto Of Budget Billlast_img read more

Tito Vilanova: Barcelona head coach to have surgery

first_imgBarcelona coach Tito Vilanova will have surgery on a saliva gland on Thursday followed by six weeks of chemotherapy and radiotherapy.Vilanova had a cancerous tumour removed from the gland at the back of his throat in November 2011. The 44-year-old is expected to be in hospital for three to four days, but going forward he “could be able to mix work with his treatment”, says Barca.Assistant coach Jordi Roura will take charge of the team in the meantime.In a news conference on Wednesday, Barcelona president Sandro Rosell said: “We want to express our unconditional support to Tito and his family.“Tito is strong, very strong, he’s shown us that and we’re convinced that he’ll be back with us soon. “We have complete confidence in the team. The club is very strong and very united, we’re capable of overcoming adversity.”Barcelona sports director Andoni Zubizarreta denied that the club would look to bring in a replacement from outside on an interim basis.“Tito is the coach, and continues to be so,” Zubizarreta said, dismissing rumours Barcelona may have contacted Vilanova’s predecessor, Pep Guardiola.Real Madrid posted a message of support for Vilanova on their website, which read: “Real Madrid want to express their support and best wishes for the coach of FC Barcelona, Tito Vilanova, and wish him a very rapid recovery. “Real Madrid offer their support to his club and to all his family.” Former Barcelona striker Gary Lineker tweeted: “Very sorry to hear Tito Vilanova, the Barca coach, is undergoing surgery after a cancer relapse. Thoughts are with him.”Manchester City striker Sergio Aguero ‏ tweeted: “We support you, #AnimoTito! We wish you the strength to overcome this moment.”Former tennis world number one Rafael Nadal tweeted: “All my strength and support for Tito Vilanova! We are all with you to overcome this next hurdle.”Vilanova’s 15-year-old son Adria, a member of the club’s youth team, tweeted: “Many thanks to everyone for the support. You’re great, everything will be fine. Greetings.”Vilanova was Guardiola’s assistant at the Nou Camp before replacing the former Spain midfielder, who has taken a sabbatical from football, in June. Since taking charge of the Catalan club, Vilanova has won 23 of his 27 matches in all competitions.The La Liga leaders are nine points clear of second-placed Atletico Madrid after 15 victories in their 16 matches in the Spanish top flight.They have also qualified for the knockout stages of the Champions League, despite one of their two defeats this season being inflicted by Group G rivals Celtic.Meanwhile, Barcelona defender Eric Abidal has trained for the first time following a liver transplant nine months ago.The 33-year-old Frenchman required surgery a year after having a tumour on his liver removed.last_img read more