HARRISBURG (WBRE/WYOU) – Three credit agencies are warning the state of Pennsylvania faces potential credit downgrades because lawmakers and the governor can’t fix inherent problems.

The latest two agencies to jump on the downgrade list are Standard and Poor and Moody’s. Thursday, a day after Governor Tom Wolf said he would let a long over-due budget go into effect without his signature, PNC Bank issued a similar warning.

Friday, S&P called its outlook of the state’s fiscal situation “negative”, noting “By failing to address long-term structural balance in fiscal 2016, lawmakers have pushed difficult fiscal decisions to the fiscal 2017 budget.” It’s report concludes “…our negative outlook rather reflects our view that the state’s fiscal issues lie in lack of political will to solve them in a timely manner…”.

Moody’s observes that with the Governor’s failure to veto a budgtet he’s called “structurally unsound” “…only brings to fore a likely new stalemate over the budget for the fiscal year that starts July 1 and ongoing questions over the state’s progress toward structural balance over the longer term.”

PNC noted Thursday that “without broader policy changes, Pennsylvania’s structural deficit will worsen..”.

If the state’s credit rating is downgraded, it will make it more difficult for the state to secure loans, and taxpayers will be forced to pay higher interest rates on the loans the state does secure.