• Published: Oct 13, 2009 - Page: 8B

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An upgrade in the state’s bond rating may be something of an under-the-hood issue for taxpayers, but it’s good news and something of which state officials can rightly be proud.

While Louisiana is a ways from perfection in its finances, our state benefits from its relatively strong performance in the recession and great improvements to state money management during almost 15 years of reforms.

Fitch’s rating of the state’s general obligation bonds — those secured by the general revenue of state government — is only one of several such ratings by the Wall Street firms.

Moody’s and Standard and Poor’s also gave positive reviews of Louisiana’s creditworthiness.

Over the long term, significant savings come to the state when it borrows money, if it maintains and improves its bond  ratings.

What is more significant, we believe, is   that the substantive moves by state government to improve financial management are ones that provide real benefits to taxpayers, beyond the benefits of a solid bond rating.

Fitch pointed to long-term reforms such as the Revenue Estimating Conference, which sets limits on what the state can responsibly count on in new revenue, and efforts to tackle budget shortfalls coming when federal stimulus dollars no longer prop up state   finances.

“For the second straight year, a national credit rating agency has taken note of Louisiana’s fiscal discipline and economic progress in recent years,” state Treasurer John Kennedy said.

Gov. Bobby Jindal also hailed the news, as did Commissioner of Administration Angèle Davis, the state’s top budget officer.

We note that all three have served in state government in important capacities in earlier administrations — those of Govs. Buddy Roemer, Mike Foster and Kathleen Blanco — where positive changes were made to state finances.

Not without some backsliding here or there, overall the trend toward more responsible budgeting and money management   has been a hallmark of those governors’ terms.

Entering a period of difficult state budget decisions, it’s vital as Jindal noted that the state keep its reforms in place and improve on them where possible, even in a tougher financial environment.