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Credit agency says La. deficit plan was only 'stop-gap' fix

1 year 1 month 2 weeks ago December 04, 2015 Dec 4, 2015 Friday, December 04 2015 December 04, 2015 9:18 AM in News
Source: Associated Press
By: Associated Press

BATON ROUGE- A national credit rating agency says the maneuvers used by Gov. Bobby Jindal and lawmakers to close a $487 million midyear budget gap were only temporary fixes.
    
Fitch Ratings released its analysis Thursday of the work recently done to rebalance this year's $25 billion budget. The assessment was that Louisiana's leaders used "stop-gap measures" that "will not address the state's persistent budget challenges."
    
The credit agency said some deficit-closing actions worsen next year's budget gap pegged at more than $1 billion, and the shortfall in this year's Medicaid program.
    
Fitch said it is looking for Gov.-elect John Bel Edwards and lawmakers to stabilize the state's finances.
    
Treasurer John Kennedy called Fitch's statement a "warning shot" that Louisiana risks a credit rating downgrade if it doesn't devise a long-term budget solution.

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