Wall Street agrees Gov. Schwarzenegger is improving California

July 12, 2005

Californians received additional good news about the state’s financial outlook when Moody’s Investors Service increased the state’s credit rating just as the Governor was signing his budget that reduces the state’s debt and does not include tax increases.

“Moody's Investors Service liked the budget signing, however, announcing a hike in the state's credit rating from A3 to A2.

“‘The upgrade reflects a continuing favorable trend of recovery in the state's economy and tax revenues, better than expected financial performance in 2005, and a moderately improved financial outlook for 2006 and beyond,’ Moody's said.”  ( Oakland Tribune, July 12, 2005)

This is not the first time the Governor’s aggressive steps to improve the state’s finances have resulted in upgrades to the state’s credit rating.  All three major credit rating agencies (Fitch Ratings, S&P, and Moody’s Investors Services) had previously upgraded the state’s credit rating since Governor Schwarzenegger took office.  The Governor’s responsible budgets have increased Wall Street’s confidence in California ’s fiscal recovery and have resulted in the significant reduction of the state’s financing costs in future years.

Yet even with clear proof California’s fiscal outlook is improving under the leadership of the Governor, some Democrats can’t seem to get away from the Gray Davis fiscal plan of spending the state to the brink of bankruptcy and expecting the state’s taxpayers to pick up the bill. 

Yesterday, state Treasurer and Democratic candidate for governor Phil Angelides attacked Governor Schwarzenegger’s fiscally responsible budget and proposed spending increases that could result in an $8-10 billion tax increase.

Luckily, it’s Governor Schwarzenegger who’s in charge of the state’s future and he’s leading the charge to reform and rebuild California .  Initiatives on the November 8^th Special Election ballot will ensure that politicians like Phil Angelides will be held accountable for their actions and will never again spend the state into a fiscal crisis.