Standard & Poor’s Ratings Services revised the outlook for Kern County, California, to negative, after the county declared a fiscal emergency last week, citing lower oil prices. The rating agency said it was concerned with a projected $27 million budget shortfall in fiscal 2016. By declaring a fiscal emergency, the county can access $40 million general fund reserve to cover the gap. The third largest county in California, with a total population of nearly 900,000, Kern’s pension obligations, already high, will “continue to rise for a number of years,” said Standard & Poor’s credit analyst Li Yang. “The county is going to need to address that deficit going forward.” Kern forecasts that its pension costs will increase through 2022 and has set aside portions of its reserves to account for the rising costs, said Yang. “That will translate into spending down reserves,” he said. The […]