Moody's says Kansas layoffs threaten government tax revenues

January 17, 2020 - 6:22 pm

om Gilbert/Tulsa World via AP


Moody's Investors Service says that layoffs at Spirit AeroSystems are “credit negative” for the city of Wichita, Sedgwick County and local communities because the workforce reduction threatens retail sales.

That lowers sales tax revenues that support government budgets. 

The credit rating service said Friday that most local governments in the Wichita area would be able to weather a short-term economic slowdown stemming from the layoffs. 

However, it anticipated that workers will move out of the area if the lower staffing at Spirit and other suppliers continues for an extended time.

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