Kansas

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.

The one-notch upgrade to AA reflects growth in Kansas Department of Transportation available fund balances and the state's improved credit quality, Fitch said.

Public sector employers are in a fierce competition with the private sector for workers and may be losing amid labor shortages and inflation.

Gov. Laura Kelly allowed the bill's enactment without her signature, citing its "potential unforeseen consequences."

The Republican-controlled legislature sent the governor a tax cut bill that included replacing the state's three-tier personal income tax structure with a flat 5.15% rate.

The taxable bonds would finance a bottling and other facilities, which would be leased to a private business.

The growth in March tax collections reported by the states was less robust than a year earlier.

The bill creates an ESG Oversight Committee to compile a list of financial services providers determined to be "discriminating" against the fossil fuel, firearm, or ammunition industries.

Opponents warned the measures could roll back 10 years of state efforts to improve funding for the Kansas Public Employees Retirement System.

The rating agency said it could upgrade the state's ratings over a two-year period if recent healthy fund balances are maintained.