California’s credit rating, ranked second-lowest in the U.S. by Standard & Poor’s, is poised to benefit if Governor Jerry Brown is able to persuade a special legislative session to alter plans for a budget reserve.
California is parched. The state’s worst drought in decades has left its reservoirs half-naked, if not skeletal. Officials say 17 communities could run out of drinking water this summer; some are considering mandatory rationing; and 500,000 acres in the state may be left fallow.
Arnold Schwarzenegger swore after his first month as California governor that he’d rip up the state’s credit cards. Instead, the Republican former action- movie hero pushed through at least $52 billion of borrowing.