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Credit Agency Moody's Praises Indiana's Balanced Budget Amendment

The amendment requires lawmakers to pass a balanced budget. (Lauren Chapman, IPB News)

A national credit rating agency is lauding Indiana voters' ratification of a constitutional amendment that obligates the General Assembly to pass balanced budgets.

Moody's Investors Service deemed Indiana's new mandate as "credit positive" in its Weekly Credit Outlook that regularly reviews policy decisions that impact state and national government finance.

Indiana's measure was the only state finance-related ballot measure to earn a "positive" indication in Moody's postelection roundup.

About 72 percent of Indiana voters endorsed the measure, which obligates Indiana's Legislature to pass balanced budgets unless supermajorities of two-thirds of the members of each chamber vote to suspend that requirement.

Moody's noted Indiana's mandate means it will no longer stand with Arizona, Vermont and Virginia as the only states lacking an explicit balanced budget requirement.

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