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Moody's: Pennsylvania budget ignores fiscal challenges

Written by The Associated Press | Mar 24, 2016 7:25 PM
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(AP Photo/Matt Rourke)

(Harrisburg) -- A credit ratings agency is welcoming the end of Pennsylvania's nine-month budget stalemate but said the spending package doesn't resolve the state's structural budget deficit or address its looming pension crisis.

Democratic Gov. Tom Wolf backed off a veto threat and agreed to permit a Republican-penned $6.6 billion supplemental spending package to become law.

Wolf has said he relented because it was ``time to move on'' and start work on the next budget.

Moody's said Thursday that the spending package represents an improvement over political gridlock, but fails to address long-term fiscal challenges.

The agency predicted a new budget stalemate for the next fiscal year that begins July 1.

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