By the beginning of 2010, Schwarzenegger and the lawmakers had closed a 60 billion deficit partly by slashing spending on schools, temporarily raising taxes and borrowing from local governments.
The fiscal strains have left California with the lowest credit rating among U.S. states. A taxable California bond maturing in 2039 traded for a yield of 7.08 percent today, up from an average of 6.87 percent on May 6, according to Municipal Security Rulemaking Board data.
Continue reading Schwarzenegger Preps ‘Terrible Cuts’ to Close Deficit
