…and still has a $5 Billion deficit projected for next year. Oh, the Governator signed the budget.
Moody’s Investment Services followed up by raising California’s Debt Rating from A3 (bad) to A2 (not as bad). Perhaps I’m being a bit cynical about this; after all, Moody’s says that both A3 and A2 ratings indicate “bonds with many positive investment qualities.” California, though, has one of the worst ratings of any state.
On the good news side of the ledger, the Governator used the line-item veto to eliminate some egregious programs, such as the UC Berkeley Center for Labor Research and Education. He also vetoed hiring 14 new state tax investigators. While the veto “saved” $1.2 million, the investigators were budgeted to bring in $4 million in back tax payments and penalties annually. So tax cheatersprocrastinators, you can rejoice!
Again, the key for California will be the results of the November 8th special election, which will have numerous initiatives that could change our state government in many ways.