FRESNO, Calif. (KMJ) — S&P Global Ratings is urging California state leaders to do a better job of preparing for the next economic slowdown.
Their latest report outlines a simulated stress test, which aims to determine just how prepared a state is for a loss of revenue.
California ranks among the worst in the nation, when it comes to having a sufficient budget.
S&P says California is susceptible to boom-and-budget cycles, due to simultaneously high incomes, a progressive income tax structure, and an above-average rate of poverty.
However, the agency adds that the state deserves some credit for working to pay down what Gov. Jerry Brown has called the “wall of debt,” saying the state is in a better position at this point to weather a storm, than it’s been in recent memory.
Aaron Abeytia anchors afternoon newscasts on News/Talk 580 & 105.9 KMJ. Read More…
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