Sep. 21, 2017
HARRISBURG – Rep. Frank Ryan (R-Lebanon) today responded to this week’s announcement by Standard & Poor’s that the firm had downgraded Pennsylvania’s credit rating due to the state’s as yet unresolved 2017-18 budget.
On Wednesday, a division of the Wall Street bond rating company, S&P Global Ratings, made good on its months-old threat to lower Pennsylvania’s bond rating and warn investors of the state’s failure to meet its “moral obligation” to balance budgets.
Ryan, a retired Marine reserve Colonel who spent decades as a financial restructuring expert, said if the responsible revenue package adopted by the House last week becomes law, that would be a much more important step than having legislators and state officials wring their hands over the opinions of a New York City-based credit agency.
“I was elected by the people of the 101st Legislative District, not a bond rating agency on Wall Street that has made its share of dubious calls over the decades,” Ryan said. “As a financial professional, I do not discount the short-term effects of a credit downgrade, but let us remember this is one of the same firms that gave repeated AAA ratings to the junk bonds that created the housing crisis and led to one of the worst economic downturns our nation has ever seen.”
Ryan also made the point that news outlets and government are reading the downgrade the wrong way.
“Financial security, as in warfighting, depends upon a solid plan and flawless execution. Neither of those things are possible when folks panic and/or seek to score temporary political points,” Ryan said. “What will fix this situation is a solid revenue plan that reins in spending and holds the line on taxes. That will create jobs, which in turn will bring in the revenues needed for government operations. It really is that simple, but it requires unwavering discipline.”
Representative Frank Ryan
101st Legislative District
Pennsylvania House of Representatives
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