Monday, July 27, 2009

Budget mess makes California vulnerable to crippling credit downgrade, official warns

Budget mess makes California vulnerable to crippling credit downgrade, official warns
Treasurer Bill Lockyer says the state could find funding sources for crucial programs cut off if its credit rating is dropped to junk status. Lawmakers and the governor vow to keep negotiating.

State Treasurer Bill Lockyer warned today that state leaders' failure to reach a budget deal has put California at risk of a credit downgrade that would cut off access to funds needed for building schools, roads and other public works projects.