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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.


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