{"id":10925,"date":"2010-01-14T02:15:00","date_gmt":"2010-01-14T02:15:00","guid":{"rendered":""},"modified":"2010-01-14T16:36:16","modified_gmt":"2010-01-14T16:36:16","slug":"california-gets-downgraded-as-markets-worry-about-deficit","status":"publish","type":"post","link":"https:\/\/calitics.com\/index.php\/2010\/01\/14\/california-gets-downgraded-as-markets-worry-about-deficit\/","title":{"rendered":"California Gets Downgraded As Markets Worry About Deficit"},"content":{"rendered":"

After a series of credit downgrades during our budget crisis last year, the score stabilized a bit during the down time.  Now, it’s been nudged back to “A-” by S&P today<\/a>.<\/p>\n

Citing serious risks in Gov. Arnold Schwarzenegger’s budget plan, Standard & Poor’s on Wednesday downgraded California’s national-low credit rating from “A” to “A-minus.”<\/p>\n

The ratings house sees a gloomier picture this year for California’s finances because “the state’s options have narrowed considerably” and Schwarzenegger has made risky calculations in his latest budget plan to bridge a $19.9 billion deficit.
\n
*** *** ****
\n
S&P cited the governor’s reliance on “extraordinary federal cooperation” and voter approval of $1 billion in transfers from mental health and child development funds as risky assumptions. It also said the unlikelihood of the Legislature reaching a quick deal on “deep cuts as proposed” could hinder the state’s finances. (SacBee<\/a>)<\/p><\/blockquote>\n

This comes the same time as Arnold is putting out feelers for a trip to DC<\/a> to beg for cash for the state and Arnold starts talking about slapping increased fees and fines on anything that appears interesting<\/a>. I hope you didn’t have plans for a free Family Fun Day at the California Science Center anytime soon<\/a>.<\/p>\n

Of course, you and I know that California is constitutionally required to pay debt before it pays anything else.  Apparently the credit agencies aren’t so sure about that.<\/p>\n","protected":false},"excerpt":{"rendered":"

After a series of credit downgrades during our budget crisis last year, the score stabilized a bit during the down time.  Now, it’s been nudged back to “A-” by S&P today<\/a>.<\/p>\n

Citing serious risks in Gov. Arnold Schwarzenegger’s budget plan, Standard & Poor’s on Wednesday downgraded California’s national-low credit rating from “A” to “A-minus.”<\/p>\n

The ratings house sees a gloomier picture this year for California’s finances because “the state’s options have narrowed considerably” and Schwarzenegger has made risky calculations in his latest budget plan to bridge a $19.9 billion deficit.
\n
*** *** ****
\n
S&P cited the governor’s reliance on “extraordinary federal cooperation” and voter approval of $1 billion in transfers from mental health and child development funds as risky assumptions. It also said the unlikelihood of the Legislature reaching a quick deal on “deep cuts as proposed” could hinder the state’s finances. (SacBee<\/a>)<\/p><\/blockquote>\n

This comes the same time as Arnold is putting out feelers for a trip to DC<\/a> to beg for cash for the state and Arnold starts talking about slapping increased fees and fines on anything that appears interesting<\/a>. I hope you didn’t have plans for a free Family Fun Day at the California Science Center anytime soon<\/a>.<\/p>\n

Of course, you and I know that California is constitutionally required to pay debt before it pays anything else.  Apparently the credit agencies aren’t so sure about that.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[32,117],"tags":[3121],"class_list":["post-10925","post","type-post","status-publish","format-standard","hentry","category-32","category-117","tag-3121"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack-related-posts":[],"jetpack_shortlink":"https:\/\/wp.me\/p6Pvhz-2Qd","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/calitics.com\/index.php\/wp-json\/wp\/v2\/posts\/10925","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/calitics.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/calitics.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/calitics.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/calitics.com\/index.php\/wp-json\/wp\/v2\/comments?post=10925"}],"version-history":[{"count":0,"href":"https:\/\/calitics.com\/index.php\/wp-json\/wp\/v2\/posts\/10925\/revisions"}],"wp:attachment":[{"href":"https:\/\/calitics.com\/index.php\/wp-json\/wp\/v2\/media?parent=10925"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/calitics.com\/index.php\/wp-json\/wp\/v2\/categories?post=10925"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/calitics.com\/index.php\/wp-json\/wp\/v2\/tags?post=10925"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}