ANNAPOLIS, Md. (CBSDC/AP) — Maryland Treasurer Nancy Kopp has spoken to Gov. Martin O’Malley about a credit rating agency’s concerns over the state’s unresolved budget situation.

Kopp talked to O’Malley during a pre-meeting of the state’s Board of Public Works on Wednesday.

She says a representative from Moody’s Investor Services called the state on Tuesday as the credit agency warned that counties could face a downgrade in their bond ratings. Kopp says the representative was assured Maryland will have a balanced budget before the next fiscal year, whether through a special session or cuts by the Board of Public Works.

O’Malley says “there’s a lot of denial right now” about the potential consequences due to the Legislature’s failure to approve a revenue package in the regular session that ended last week.

The governor said he will call a special session of the General Assembly to avert about $512 million in budget cuts as soon as the House and Senate can reach consensus on how to pass a revenue package to make up the money.

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