Day Six: Fiscal Year 2009-2010

SACRAMENTO — 16:57 p.m., Pacific Standard Time

No budget deal yet.

Citing the state’s “continued inability to achieve timely agreement on budgetary and cash flow solutions to its severe fiscal crisis” Fitch Ratings, one of three firms that set the bond rating for California’s general obligation bonds, knocked California down two rungs to BBB.

California already has the lowest bond rating in the country.

In a surprise move, Gov. Arnold Schwarzenegger issued a statement after the downgrade saying it highlighted the need to quickly plug the estimated $26 billion hole in the budget for the fiscal year that began July 1. To wit:

“This underscores the urgency to solve our entire deficit with the necessary cuts instead of kicking the can down the alley. This is not the time for boycotting budget meetings – all sides must come to the table and balance the budget immediately.”

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