The Outlook revision to Stable from Negative reflects the timely adoption of a $125.8 billion FY 2027 budget (the “Adopted Budget”) that addresses approximately $8 billion in previously underbudgeted annual expenditures, balances Fiscal Years 2026 and 2027, incorporates enacted State support, and adds to the General Reserve without broad service reductions. While structural imbalance persists, the Adopted Budget’s approach for fiscal years 2026 and 2027, though heavily reliant on non-recurring resources and timing delays, is meaningfully improved from the Preliminary Budget framework of potential property tax increases and reserve draws that underpinned KBRA’s Negative Outlook, assigned on March 20, 2026.
The long-term rating continues to be supported by…
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