Arkansas

The rating agency, which gave the state a positive outlook a year ago, upgraded its general obligation rating a notch to AA-plus ahead of a $25 million bond sale.

The up to $385 million of sales and use tax revenue bonds will finance sewer projects to address sanitary system overflows under a federal consent decree.

Legislation signed into law will place $500 million of general obligation bonds and a constitutional amendment for economic development districts on the ballot.

While Texas is forecasting a big budget balance, fiscal boom times are ebbing for it and other Southwest states amid tax cuts and depleted federal funding.

It's the latest mark of distress for proton treatment centers financed with speculative-grade municipal bonds.

The $105 million of power project revenue refunding bonds deal for Plum Point Energy Station in Arkansas comes amid tighter emission regulations.

Laws enacted in Arkansas and Kansas will reduce income tax revenue by hundreds of millions of dollars in fiscal 2025.

The rating agency revised the outlook on the state's AA general obligation rating to positive from stable and said there is a one-in-three chance of a future rating upgrade.

The issuer said it pans to discuss the matter with the IRS.

States nationwide saw slower general fund revenue growth in fiscal 2023 after gains the previous two fiscal years fueled by high inflation and federal stimulus.