Comptroller Glenn Hegar Warns That The State's Credit Score Could Be Vulnerable
We’ve all got bills – and the state of Texas does, too. Bills are nothing to be afraid of, if you can manage them. If you miss some payments or take on more debt than is healthy, your credit score will go down and your interest rates will go up. Suddenly, your debt has become overwhelming.
Currently, Texas has a AAA credit rating, the best there is, so it’s less expensive for the state to borrow money and it makes for a hospitable business environment. Texas Comptroller Glenn Hegar has issued a warning about the state’s credit rating and its rainy day fund, which helps the state keep up with its long term liabilities.
“We need to reform the way that we manage that,” he says. “If we do not pay attention to our long term liabilities, then I think sometime in the near future Texas could see a downgrade in our credit rating.”
The Rainy Day Fund, or the Economic Stabilization Fund, currently has $11 billion in it.
Read more: http://tpr.org/post/comptroller-glenn-hegar-warns-state-s-credit-score-could-be-vulnerable