Credit agencies chime-in on spending, tax policies
We’re getting used to seeing Idaho and other Mountain States rank highly in government spending restraint, savings and accountability.
Just last month, we wrote about the solid rankings for Governor Brad Little (Idaho) and Governor Greg Gianforte (Montana). Now, more accolades are arriving.
The credit agency Fitch has re-affirmed Idaho’s AAA credit rating. It’s the highest level a state can get, and especially noteworthy given the Idaho legislature’s recent steps to flatten the state income tax and return more revenue to taxpayers in the form of rebates.
"Idaho's 'AAA' IDR reflects the state's credit strengths, including broad powers over spending and revenues, strong reserve levels, low long-term liability burden, and expected solid long-term economic growth. Fitch believes the state is well-positioned to absorb the consecutive rounds of tax cuts it has adopted to date, given Idaho's prudently managed budget with significant one-time spending that rolls off to create fiscal capacity."
Idaho is also improving on its solid ranking for its reserve fund, according to Pew Charitable Trusts. “Rainy day funds,” as they are called, are critically important to being able to weather economic storms. The numbers show Idaho and Wyoming doing very well, but danger in Montana and especially Washington state.