Juneau – Speaker of the House Rep. Bryce Edgmon (D-Dillingham) has released the following statement in response to news that S&P Global Ratings has placed the State of Alaska on its CreditWatch and has indicated that Alaska’s credit rating would likely be lowered without the passage of significant fiscal reforms this year.

“Today’s action by a respected credit rating agency shows the need for lawmakers to move beyond short-term fixes and embrace long-term fiscal solutions, which is exactly what the members of the Alaska House Majority Coalition have been fighting for since the start of the legislative session,” said Speaker Edgmon.

In a report issued today, S&P Global Ratings noted that because of the limited scope of the call for the Second Special Session, which so far is restricted to the Fiscal Year 2018 Operating Budget, it will be unlikely that significant fiscal reforms can be put in place. This could result in another year of structural deficits and the continued overreliance on Alaska’s savings and reserves. 

“We must do more than just pass the FY18 budget this year. We need new and more diversified revenues for Alaska,” continued Speaker Edgmon. “If we continue to kick the can down the road, not only will our credit ratings and borrowing costs suffer, so will our broader economy and Alaska jobs.  The time to act is now.”[xyz-ihs snippet=”Adsense-responsive”]

  bryce edgemon, budget, creditwatch, juneau, rating, reform.legislature, s&p, state