Moody’s issues ‘credit negative’ outlook for Oklahoma

OKLAHOMA CITY (AP) – One of the nation’s top rating agencies is issuing Oklahoma a “credit negative” warning amid the state Legislature’s inability to close a $215 million hole in its budget for the current fiscal year.

Moody’s Investor Service issued the credit outlook for Oklahoma Monday in its latest credit bulletin on U.S. public finance.

The rating agency noted that while the estimated budget gap is only 4 percent of general fund spending, it is meaningful. It pointed specifically to the legislative budget impasse that has stretched on for nearly six weeks.

Oklahoma’s GOP governor and Republican-controlled House and Senate have not been able to reach an agreement on any long-term revenue measures. The agency also warns that using one-time revenue sources will make future Oklahoma budgets more difficult.