Flame retardant underwear provides an additional barrier against fire and the resulting heat.
Small-XXLarge
Posted on 01/12/2004 7:48:20 PM PST by calcowgirl
SAN FRANCISCO, Jan 12 (Reuters) - Credit ratings agencies on Monday praised Gov. Arnold Schwarzenegger's austere budget as a step toward solving California's chronic fiscal problems, but cautioned that much hinges on the veteran showman's ability to sell a $15 billion bond plan to voters.
If voters fail to approve that long-term bond, California lawmakers could be thrown back to the political deadlock that Schwarzenegger has vowed to break -- facing either deeper spending cuts that Democrats will not support or tax hikes the Republican governor has rejected, analysts and investors said.
"The crunch is on," said John Hallacy, managing director of municipal research for Merrill Lynch.
Schwarzenegger on Friday proposed a budget for the coming fiscal year featuring $4.6 billion in spending cuts mainly in education and welfare programs. The plan hinges on the massive bond in order to refinance existing debt.
The bond, which will go before voters on March 2, would be the largest municipal issue on record, and even Schwarzenegger's team has conceded it will be a tough sell to convince residents of the nation's most populous state to back it.
Steve Zimmermann, a managing director at Standard & Poor's, said the budget plan, which must be backed by two thirds of the Democratic-controlled legislature, represented a step toward resolving California's looming deficits over coming years.
"This budget, if adopted, would be movement toward structural balance through cuts," Zimmermann said.
But passing the $15 billion bond is crucial for the state, which would otherwise face the prospect of trying to roll over $14 billion in short-term debt, Zimmermann and others said.
That would mark the third consecutive year California has had to take that unusual step, and this time investors would likely demand steep concessions in the form of both higher interest rates and credit guarantees, analysts said.
In addition to the fight to convince voters to back his own bond, Schwarzenegger is also waging a battle in California courts to keep alive two borrowing plans proposed by his predecessor, former Gov. Gray Davis, a Democrat.
One of those -- a $10.7 billion bond issue -- is a critical fallback in case voters balk at Schwarzenegger's proposal, said David Moore, American Century Investments' director of municipal research.
The Sacramento, California-based Pacific Legal Foundation has challenged the $10.7 billion bond, claiming it violates the California constitution because voters did not approve it.
If both major bond proposals are blocked at the ballot box or by the courts, officials have said California will run out of cash in June.
"It could really force them into making some really severe budget cuts or revenue enhancements," American Century's Moore said.
Stephen Moore, a senior fellow with the Cato Institute and member of the governor's budget audit team, said : "None of us want to borrow, but we definitely think borrowing is a superior alternative to raising taxes. Borrowing is the least bad alternative."
Tim Blake, a senior analyst at Moody's Investors Service said the one-time fixes in Schwarzenegger's budget plan point to a massive problem that cannot be solved in a year.
But he added Moody's was not "critical" of the stop-gap measures given the severity of California's fiscal problems, which spurred the agency to cut the state's credit rating in December.
(Additional reporting by Michael Kahn in San Francisco)
I'm just trying to keep Norm on his toes! ;-)
"The bond, which will go before voters on March 2, would be the largest municipal issue on record, and even Schwarzenegger's team has conceded it will be a tough sell to convince residents of the nation's most populous state to back it."
It ain't legit ta borrow long term what the Demicrats squandered in less than 24 months! Yes, I want the government faced with bankruptcy so Governor Schwarzenegger can re-negotiate the illegitimate government employee Union Contracts AND the dismal, illegal Davis energy contracts!!!
Flame away... I'm here, I'm conservative and I ain't gonna stop it!!!
One of those -- a $10.7 billion bond issue -- is a critical fallback in case voters balk at Schwarzenegger's proposal, said David Moore, American Century Investments' director of municipal research.
So here we have Plan B.
If they can't borrow long term (bonds), they will continue to borrow short term.
When will they get the message? STOP SPENDING!
Glad to see you survived. :-)
I cruised through most of the news... and posted the newsworthy. I couldn't bring myself to post the 'Burton blasts Schwarzenegger budget' articles. Same whines as usual... old news. LOL.
Flame retardant underwear provides an additional barrier against fire and the resulting heat.
Small-XXLarge
Do you have a link for those props?
Don't worry, I just be baitin the blind and the deaf, so to speak.(oh brother, here it comes now)
The Sacramento, California-based Pacific Legal Foundation has challenged the $10.7 billion bond, claiming it violates the California constitution because voters did not approve it.
Do you notice how the media continues to exclude the OTHER reason these bonds were challenged in the lawsuit: a deficit does not fit the constitutional requirement that bonds be for a 'single object or work'.
Arnold's bonds are unconstitutional too... unless of course the public can be fooled into voting for a "balanced budget act to change the constitution."
It's criminal.
(Obviously, you won't be getting any flames from me! LOL.)
But here's a couple links:
Proposition 57/58:
FR Discussion and HistoryProposition 56
NoBlankChecks.com
If you want more, you can click on the key words Prop 57 or Prop 58 below the article in Post #1 and you will find quite a few items.
Likewise, you can do an FR search from the home page http://www.freerepublic.com... Search for 'keyword': Prop 55, etc.
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