Pennsylvania’s long budget stalemate could soon make it impossible for some of the state’s poorest school districts to get another loan to stay open.
New York-based Standard & Poor’s credit rating agency said it has withdrawn its ratings based on a state government program that can help school districts get more favorable loan terms by giving a guarantee to repay bondholders.
S&P said Pennsylvania cannot ensure the timely payment of debt service because of the stalemate. The agency also noted that budgets that are passed late are not unique to Pennsylvania, but it considers the length of our state’s stalemate and the frequency to be an anomaly.
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