LEXINGTON, Ky. (AP) – A credit rating agency says a recent state Supreme Court decision that prohibits Gov. Matt Bevin from ordering spending cuts at public colleges and universities is a “credit negative” for the state.
Moody’s weekly credit outlook for public finance, released late Thursday, says the decision by the court makes it harder for the governor to manage difficult budget scenarios without cooperation from the legislature.
Bevin ordered spending cuts of 2 percent at public colleges and universities. The state legislature did not approve those cuts. Democratic Attorney General Andy Beshear sued, arguing state law only allows the governor to cut spending if there is a budget shortfall of 5 percent or less.
The state Supreme Court agreed and ordered Bevin to release the money.
Beshear said Kentucky’s law “protects our liberty.”
Copyright 2016 The Associated Press.