Apparently the rising gas tax isn’t going to fix everything in the state. A major rating agency said the deal puts the state in a bad position because of the trade offs that the legislation provides, including reducing the sales tax and a number of other tax cuts. Moody’s notes that the new tax plan is expected to bring $1.23 billion a year into the Transportation Trust Fund, but take $1.4 billion from the state budget. Moody’s also said that with rising pension costs and already underfunded programs, the state is in worse shape because of this deal.
