The Washington State Treasurer has expressed concern that, by increasing the amount the state can legally borrow, EHB 2561—also known as the Jobs Act—could affect Washington’s credit rating. However, a review of bond rating decisions in other states suggests that the State Treasurer is being overly cautious. The legislation adds relatively little to Washington’s debt load. Also, the small increase to the state’s debt load created by the Jobs Act would be offset by the potential savings to the state’s school construction budget. This backgrounder describes how the passage of the Jobs Act should provide the basis for continued solid ratings for Washington’s credit in the future.
Saving Money, Supporting Schools: Job Legislation Poses Minimal Risk to Washington's Credit

September 18, 2009