Credit rating

Governor Chris Gregoire is telling state agencies to prepare for further budget cuts because of the faltering economy. Her budget office today asked agencies for ideas to reduce planned spending by 5 or 10 percent. 

Meanwhile, the Standard & Poor's downgrade of federal debt is unlikely to have much near term effect on the borrowing costs for the state. Although, S&P did deal the city of Tacoma a blow by downgrading it's credit rating on debt backed by the federal government.

Soon after downgrading the credit rating of the United States, Standard & Poor’s has taken the city of Tacoma’s rating down a notch from AAA to AA+ on debt it has issued that is backed by the federal government, according to a report in the Puget Sound Business Journal.