S&P Cuts California Bond Ratings
January 14, 2010
California’s situation is getting worse, and S&P has taken notice by dropping its bond ratings for the second time in a year. California now has to spend more money on interest for any bonds it issues, exacerbating the budget crisis in the state and putting more pressure on the government to raise taxes at an inopportune time.
What’s more is that it’s not just bond cuts, but job cuts that will becoming as the state looks to slash billions more from the budget. And these cuts are trickling down to the regional and city level as well, forcing additional cuts.
Look for more momentum behind the push to exclude commercial properties from Proposition 13 this year!
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Categories:
Commercial Finance and Lending | Trends
Tags: California, Government, Proposition 13, S&P, Taxes
Tags: California, Government, Proposition 13, S&P, Taxes
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Business remains the golden goose in California. Despite that, we will see people from all quarters pushing for commercial property to be excluded form Prop 13. It is short sighted, but so are most of the budget "solutions" put in motion by Sacramento. It is a perpetual cycle fed by the notion that more money is always the solution.
we are a mess. look for use to drop into the b's in 6-12 months. we closed our budget gap from $60B to $19B, but its the last cuts that will be the hardest.
is it really that hard for use to legislate a balanced budget? there are only two options – more taxes or less free money. if the state had a sense of humor they would put the budget online with some slider bars and tell constituents to figure it the eff out for themselves.