California Sales Tax Bonds May Yield Less Than 5% This Week - Bloomberg.com:
"Oct. 26 (Bloomberg) -- The state of California, returning to the bond market for the third time in a month, may pay yields of less than 5 percent this week to sell revenue bonds backed by sales taxes.
The most populous U.S. state, whose general pledge to repay debt carries the lowest credit rankings among its peers, is refinancing $3 billion in tax-exempt bonds issued in 2004 and 2008 to patch budget deficits. An 11 percent annual drop in sales-tax collections through June led to this deal, intended to smooth out repayment for the next 14 years.
California is facing resurgent fiscal strains brought on by the worst recession since World War II. Since February, Governor Arnold Schwarzenegger and lawmakers have cut $32 billion from spending, raised taxes by $12.5 billion and covered $6 billion more with accounting maneuvers. State officials predict a total of $38 billion in deficits in the next three fiscal years."
"Oct. 26 (Bloomberg) -- The state of California, returning to the bond market for the third time in a month, may pay yields of less than 5 percent this week to sell revenue bonds backed by sales taxes.
The most populous U.S. state, whose general pledge to repay debt carries the lowest credit rankings among its peers, is refinancing $3 billion in tax-exempt bonds issued in 2004 and 2008 to patch budget deficits. An 11 percent annual drop in sales-tax collections through June led to this deal, intended to smooth out repayment for the next 14 years.
California is facing resurgent fiscal strains brought on by the worst recession since World War II. Since February, Governor Arnold Schwarzenegger and lawmakers have cut $32 billion from spending, raised taxes by $12.5 billion and covered $6 billion more with accounting maneuvers. State officials predict a total of $38 billion in deficits in the next three fiscal years."