Posted on 07/31/2009 7:50:32 AM PDT by SmithL
The plan signed by Gov. Arnold Schwarzenegger this week to balance the state's budget could leave California facing shortfalls in future years of more than $15 billion, according to an analysis released Thursday by a major Wall Street credit rating firm.
Moody's also criticized California's plan to take more than $1 billion from counties' redevelopment agencies this year to help close its $24 billion deficit, saying that could jeopardize those agencies' credit ratings.
Moody's is one of several firms, including Fitch Ratings, that downgraded the state's credit ratings this month after legislators failed to pass a budget by the June 30 deadline.
Emily Raimes, Moody's vice president and senior analyst, said that the plan adopted this week may stop the state's credit rating from dropping further, but added that eliminating the deficit "was achieved through a combination of cuts, raids on local funds, accounting maneuvers and one-time revenues that leave the state poorly positioned for budgetary balance in future years."
(Excerpt) Read more at sfgate.com ...
Smoke and mirrors is dead on! Next year, bankruptcy or fed bailout.
Hey AAAHNOLD hasta la vista baby!
The California cluster-blank continues.
After this ... he WON’T be back.
Absolutely no sympathy for a state that continues to elect lib leaders (even Terminator Arnold--lately terminating Kalifornia); wants everything PC, caters to illegals; leaves agricultural areas fallow to keep some insect from extinction,uses more utilities than any other state, yet refuses to build another utility;charges the most per gal. gas than most other states, yet refuses to drill offshore.
Did you notice that RUSSIA is drilling off Cuba? We do need GOOD alternative energy, but guess what? IT AIN'T HERE YET. Pretty soon, with current trends, China will own the dollar and Russia will own the world's oil and gas.
CA could be a boom state again if it would cut business taxes, build a couple utilities, drill offshore, and put humans above insects.
vaudine
California could shortly fall into the Pacific, and America would be the better for it. Like Bammy told the lady whose ancient mom needed a pacemaker, “Maybe you’re better off not having the surgery, but taking the painkiller.” What’s good for our aged has gotta be great for California, hayna?
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