JACKSON The bond credit rating agency Moodys Investor Service has given Mississippi a negative credit outlook because the state dipped into its rainy day fund to cover budget shortfalls, but the states bond rating remains unchanged.
Moodys says officials withdrawal of $108 million from reserves further weakens the states financial position.
The credit outlook, issued Monday, does not change the states bond rating, but state Treasurer Lynn Fitch said Tuesday that it is essentially a warning shot over Mississippis bow, and she hopes lawmakers take note. A decline in the bond rating would increase the states expenses for long-term borrowing.
Now, it is more important than ever for our Legislature to institute truly conservative fiscal policies, like spending within our means, keeping borrowing to a minimum, and shoring up our rainy day fund, Fitch said in a statement
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