State Receives Negative Credit Warnings

Colorado's state government received negative credit warnings on certificates of participation and school district debt this week. State Treasurer Mike Coffman says the warnings from Standard and Poor's Ratings Services were based on recent state revenue forecasts indicating a 330 (m) million dollar budget gap in the general fund for the next fiscal year. The certificates are used to finance the long-term lease of assets such as cars and buildings. If annual payments are not made, lenders have a right to seize the assets. Coffman says the warnings are a message to lawmakers to cut the budget and not borrow from cash funds as they did earlier this year. The ratings do not affect the state's short-term borrowing for transportation.