REFILE-S&P: US government shutdown constrains D.C. budget, spending
WASHINGTON Oct 9 (Reuters) - The current federal budget shutdown is constraining the budget and spending plans of the U.S. capital city, Washington, D.C., Standard & Poor's Ratings Service said on Wednesday as it cut its score on the district's institutional framework to "strong" from "very strong."
"Given the current federal budget impasse and lack of approval to begin its current-year appropriations under a federal continuing resolution, we believe the district's revenues and expenditures are subject to inherent unpredictability that constrains its ability to control and administer its spending responsibilities," said Standard & Poor's credit analyst Le T. Quach, in a statement.
A city without a state, the District of Columbia must receive federal approval for its budget, which normally happens when the U.S. Congress passes the national budget. Last week, though, Congress deadlocked and shut down federal operations, leaving the D.C. spending plans in limbo.