Saturday, August 1, 2015

Moody's: Pa. economy 'weak,' finances 'below average'

Better than NJ, not as good as Del.

Moody's: Pa. economy 'weak,' finances 'below average'


Moody's Investors Service has rated Pennsylvania's latest bond issue Aa2 -- better than New Jersey but below Delaware and other "highest-quality" states -- reflecting "Pennsylvania's below-average financial position" due to its "slower" than U.S. average economic growth, the state's resulting "below-average population growth and above-average age,"  and its "large and growing" underfunding for public-worker pension plans. 

Moody's gave the Republican-run state government under Gov. Tom Corbett credit for "three consectuive timely budgets, significantly reduced reliance" on former Gov. Ed Rendell-style one-time budget gimmicks, and a "demonstrated willingness" to cut spending when taxes flowing to state coffers fall below expectations. 

But Pennsylvania's financial position and cash on hand "remains weak relative to its historic position," due in large part to the state's "history of significantly underfunding pension contributions," which will force still higher taxpayer contributions to the state workers' and state teachers' pension funds over the next few years, "challenging (Pennsylvania's) ability" to keep balancing its budget or replenish its "depleted" budget reserves, Moody's concluded. 

More coverage
Moody's: N.J. must stop pretending
We encourage respectful comments but reserve the right to delete anything that doesn't contribute to an engaging dialogue.
Help us moderate this thread by flagging comments that violate our guidelines.

Comment policy: comments are intended to be civil, friendly conversations. Please treat other participants with respect and in a way that you would want to be treated. You are responsible for what you say. And please, stay on topic. If you see an objectionable post, please report it to us using the "Report Abuse" option.

Please note that comments are monitored by staff. We reserve the right at all times to remove any information or materials that are unlawful, threatening, abusive, libelous, defamatory, obscene, vulgar, pornographic, profane, indecent or otherwise objectionable. Personal attacks, especially on other participants, are not permitted. We reserve the right to permanently block any user who violates these terms and conditions.

Additionally comments that are long, have multiple paragraph breaks, include code, or include hyperlinks may not be posted.

Read 0 comments
comments powered by Disqus
About this blog

PhillyDeals posts drafts, transcripts and updates of Joseph N. DiStefano's columns and stories about Philly-area business, which he's been writing since 1989.

DiStefano studied economics, history and a little engineering at Penn and taught writing at St. Joseph's. He has written thousands of columns and articles for the Inquirer, Bloomberg and other media, wrote the book Comcasted, and raised six children with his wife, who is a saint.

Reach Joseph N. at,, 215.854.5194 or 302.652.2004.

Reach Joseph N. at or 215 854 5194.

Joseph N. DiStefano
Also on
letter icon Newsletter