Moody’s revises Louisiana outlook from stable to positive
BATON ROUGE — Moody’s Investors Service last week revised Louisiana’s outlook from stable to positive, noting that the state has made “significant” progress in restoring financial reserves and generating budgetary surpluses.
“Since taking office my administration has prioritized fixing the state’s dark financial outlook, and that work is paying off for the people of Louisiana,” Gov. John Bel Edwards said. “Through better fiscal management, including increasing revenues and making necessary budget cuts, we have turned deficits into surpluses and we are positioned to continue our economic recovery from this COVID pandemic. We are better placed to bounce back from our current challenges because of our fiscally responsible approach to budgeting.”
“Moody’s recognizes the great strides we have made in stabilizing our budget, generating surpluses and replenishing our Rainy Day Fund,” Commissioner of Administration Jay Dardenne said, “The positive outlook is welcome news on the heels of the difficult challenges of the past several years.”
According to Moody’s analysis: “Louisiana’s positive outlook reflects the significant progress the state has made restoring its financial reserves and liquidity in recent years by aligning revenue and spending in a post-energy boom era, rebuilding borrowable funds and generating budgetary surpluses in consecutive years. We expect that the state, through careful fiscal management and with the help of federal stimulus aid, will be able to sustain its progress despite the impacts of the coronavirus.”