July 3, 2019 – In a report issued today, Moodys’ Investor Service said seven states – MA, NH, NC, OH, OR, RI and WI – began their fiscal years in 2020 on July 1 without adopting a budget.

While Moody’s opined that any missed debt service payments remained unlikely due to mechanisms put in place to temporarily fund payments, late budgets are “a sign of governance weakness” which may adversely impact the credit outlook for states.

Education-related funding was the most common reason for state budget delays. In MA, legislators failed to reach consensus on state college tuition, while in North Carolina, the state’s governor vetoed the entire budget due to disagreements on Medicaid expansion and teacher pay raises.

NH’s governor also vetoed the fiscal year 2020 budget due to concerns on the impact of proposed tax increases.

Contact Moody’s at +1 (212) 553-1653 to learn more or request a full report.

Contact Kyle Skinner at KSkinner@BuyMuni.com.