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S&P Drops Kansas Credit Rating, Citing Ongoing Budget Issues

TOPEKA, Kan. (AP) — S&P Global Ratings says it's downgraded the state's credit rating because of its ongoing budget problems. The rating agency said Tuesday it has dropped its rating for Kansas to "AA-," from "AA." The action comes three months after S&P put the state on a negative credit watch. State Budget Director Shawn Sullivan says the S&P report cites a continued underfunding of the state's pension system. He says Kansas is still being penalized for years of neglect before improvements made in 2012. The report also cites the state's continued diversion of funds from highway projects to general government programs. The state has struggled to balance its budget since slashing income taxes in 2012 and 2013. S&P downgraded the state's credit rating in 2014.

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