In its announcement, Moody’s cited Kansas’ improved governance profile, including maintenance of budget reserves and increased pension contributions. Moody’s also pointed to the state’s Budget Stabilization Fund and ending balances, a reduction in debt obligations, and recent tax policy changes it described as manageable if the state follows statutory guardrails and continues revenue monitoring.
Governor Laura Kelly, in a separate release, said the outlook change reflects steps taken by the state in recent years, including building reserves, using surplus funds for one-time projects, and paying bills on time. The governor also said maintaining fiscal discipline remains important.
Moody’s also affirmed ratings on certain state-related bonds, including Kansas Department of Transportation highway revenue bonds and state general fund-backed bonds that are subject to annual legislative appropriation. Moody’s said the positive outlook reflects expectations that Kansas will likely maintain reserves and continue full pension contributions.
