Revenue Department responds to Moody’s mood on outlook

By
Suzanne Downing
-
7

The Alaska Department of Revenue issued the following statement in response to the revision of the State’s outlook from “stable” to “negative” by Moody’s Investors Service:

“The Alaska Department of Revenue was informed earlier today that Moody’s Investors Services has revised its outlook for the State of Alaska from stable to negative because of what it describes as “political paralysis,” a term used to explain the current gridlock in the Alaska Legislature.

“The rating service cited an extended regular session, two special sessions, significant uncertainty on the capital budget and the amount of this year’s Permanent Fund Dividend. While the operating budget was already finalized, the Legislature continues to consider approving additional appropriations.

“Rating agencies are generally agnostic to the levers that are pulled by states as long as they result in a fiscal course that leads to a balanced budget.

“The State of Alaska remains a highly rated entity at AA from both Fitch ratings and Standard and Poor’s and an Aa3 from Moody’s Investors Services. The Dunleavy Administration will make every effort to achieve a balanced budget and maintain these strong ratings.

“Moody’s negative outlook can be revised if the Legislature provides a balanced budget and ends this ‘political paralysis.’ ”

[Read: Breaking: Moody’s downgrades AIDEA]

Breaking: Moody’s downgrades AIDEA, puts Alaska on negative status

7 COMMENTS

  1. GREAT JOB LEGISLATURE, SHOW LEADERSHIP TO THE WORLD BY PUTTING ALASKAN FAMILIES & ALASKA’S FUTURE FIRST.

    THE TIME IS NOW – NOT SOMETIME IN THE FUTURE. COME TOGETHER FOR FAMILIES THAT YOU WILL NEVER MEET. NOW IS THE TIME TO ENSURE ALASKA’S FUTURE!
    .

    • Ross, a quick suggestion: it is very difficult to read your posts because they are all in caps. Use lower case as it is more reader friendly. I find myself skipping your posts because of all upper case.

  2. Wow. Spitting into the wind. We are own worst enemy (as said the Exxon president).
    Our credibility is stretched to the limit. We could be one of the most powerful financial states in the world. But because of the greed and naivete of the electorate we have voted for insolvency and incompetence. I voted for Mike and I think he has his heart in the right place but is getting some very bad advice. No wonder they don’t ask me for advice.

  3. The important factors for WHY the downgrade happened must be addressed….
    “Credit challenges, such as a narrow economy, comparatively large net pension liability, elevated exposure to climate change and high reliance on the state’s oil production industry…”
    Dismantling the state’s Climate Action Committee and ignoring the effects of climate change will further downgrade our credit rating in years to come.
    So too will ignoring the “pension crisis” at hand while looking to funnel more state funds to the oil industry with state subsidies that hurt revenue.
    Moody’s layed out the argument in clear concise terms, now how will the government of Alaska respond?

  4. From Stable to Negative because of “political paralysis,”. It is beyond that. I am sure Moody is looking at the CBR and SBR being striped and the past history of stripping 14 Billion from the CBR, our Constitutional Savings! Then they want to strip further the other Saving to “pay for the PFD”. HB2003 takes funds from the CBR and SBR vs the LAW from the PF ERA!!
    Then Moody looks at the loss of 1.9 Billion from the PFD into the economy. Last number I heard was for every dollar into the economy by by PFD, it goes through other business’ 6 times! So, just basis math, that is 6.9 Billion being taken from the economy! Moody would rate us “Stable” if the damn Socialist would just FOLLOW THE LAW!
    This is all on Bryce Ed\gmon and Cathy Giessel, period! I call on our strong House Minority to stand against all bills from the Socialists in the House and the Socialist supporters that call themselves Republicans in the Senate. I call on the House Minority to vote NO on the CBR Vote and SBR votes that are coming up! Sure HB 2003 will pass today. But no authorization to fund it, kills the bill! Let the 30 days wind down and let the Governor call another special session, this time in Anchorage, for one thing only the PFD! Then of course the House and Senate will try and override the upcoming veto! We need the House Minority and real Republicans in Senate to vote against any override! I’m sure Cathy and Bryce will try an all or nothing vs giving some wiggle room on voting on specific line items. That harms them even more!
    Just remember, this year will end, next year will not be any fun either but an election year and because of that we have the opportunity to vet real Republicans to primary the hell out of the RINO’s and to put forward solid conservatives to run against the Socialists. ,

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