- Associated Press - Thursday, April 2, 2015

FRANKFORT, Ky. (AP) - A key bond rating agency has applauded Kentucky lawmakers for stopping what would have been a 5-cent drop in the state gas tax.

Kentucky drivers were scheduled to get a break at the pump on April 1 as Kentucky’s gas tax was scheduled to drop to 21.1 cents per gallon. But the drop would have cost the road fund about $150 million, and state transportation officials warned the road fund would run out of money by 2016.

Instead, lawmakers agreed to set the gas tax at 26 cents per gallon in a bill that passed after midnight on the legislature’s last day. Moody’s Investors Service declared the action a “credit positive” on Thursday, saying it will help the state make payments toward its $1.6 billion in outstanding bond debt.

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