Standard & Poor’s
A credit rating agency is warning that California could return to budget gimmicks this summer, in part because a court has removed an incentive for lawmakers to pass a budget that is truly balanced.
Prices in San Francisco dropped 2.5 percent from December to January, the sharpest decline of any of the 20 cities tracked in the report.
Although California still faces a $9.2 billion deficit, the credit rating agency said the state has corrected a significant portion of its budget imbalance.
State Treasurer Bill Lockyer on Monday said there’s no reason the ratings downgrade of the federal government will have an immediate effect on California but cautioned the state is still on the mend.