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

$800,000 for Portsmouth Hospital renovations

first_img Share Tweet Share 204 Views   no discussions HealthLifestyleLocalNewsPolitics $800,000 for Portsmouth Hospital renovations by: – August 2, 2018center_img Share Dr. Kenneth Darroux Minister for Health and Social ServicesAn estimated eight hundred thousand dollars ($800,000.00) has been allocated for the “further transformation” of the Reginald F. Armour Hospital at Portsmouth.This was announced during the Budget Debate on Tuesday 31 July 2018 by the Minister for Health and Social Services, Dr. Kenneth Darroux during the recently concluded sitting of Parliament.“In this year’s budget we see, I think eight hundred thousand dollars, budgeted Madame Speaker, because we feel that the time is now to implement the transformation of the Portsmouth Hospital,” Minister Darroux stated.He noted that the rehabilitation works is necessary considering that the R.F. Armour Hospital serves Portsmouth and the Ross University School of Medicine.“So we recognize that extensive works needs to be done to the hospital in Portsmouth in order to bring it up to date and up to par with what we call the second town,” Minister Darroux said.The Minister also announced that ninety-four thousand, three hundred dollars ($94, 300.00) was recently spent on lab repairs specifically to “modernize and equip the Portsmouth Hospital”. Sharing is caring!last_img read more