Standard and Poor’s: “A balanced budget requirement would strengthen Indiana’s government framework”

Reaffirms Indiana’s AAA Credit Rating

Indianapolis –In a report released today, Standard and Poor’s commented on the balanced budget constitutional amendment, one of the Governor’s agenda items, and reaffirmed Indiana’s AAA credit rating. Indiana has held AAA ratings with all three agencies, Standard and Poor’s, Moody’s, and Fitch Ratings, since April of 2010.

“Indiana continues to stand out because of our strong economic climate,” said Governor Pence. “We’ve lowered taxes, held the line on spending, and maintained our reserves, all of which help Indiana keep its competitive edge. As we look to the future, I urge the General Assembly to pass a balanced budget amendment in the coming days to ensure Indiana’s credit rating and overall fiscal reputation remain strong.”

The report states: “Neither Indiana’s constitution nor statutes require the state to initially approve or maintain a balanced budget throughout the year. The Governor has requested that the legislature consider a balanced budget constitutional amendment which is currently being evaluated by the House of Representatives. In our view, although the state has managed its finances well in the absence of this requirement, a balanced budget requirement would strengthen Indiana’s government framework.”