Capitol Alert

The latest on California politics and government

A week after Gov. Jerry Brown signed California's rare on-time budget, Standard & Poor's revised the state's ratings outlook Thursday to "stable" instead of "negative."

The ratings agency said the solutions in the 2011-12 budget are "largely realistic and should clear a path" for the state to borrow cash in the short term to pay its bills. Despite the outlook improvement, California's general obligation debt rating remains at A-, lowest in the nation.

S&P said that as much as $6.76 billion in budget solutions "entails some amount of uncertainty" due to administrative, legal or political hurdles. Those include the overhaul of redevelopment agencies, directing $5 billion to counties without reimbursing schools, online tax collection, Medi-Cal cuts and a $12 per vehicle registration fee hike.

Still, S&P believes those solutions are a small enough part of the budget for the state to manage. The full report can be seen here.


More Capitol Alert

Capitol Alert on Twitter

Popular Categories

Now on


November 2013

Sun Mon Tue Wed Thu Fri Sat
          1 2
3 4 5 6 7 8 9
10 11 12 13 14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29 30

Monthly Archives

Latest California Clips