The 'A+' rating on California's GO bonds reflects: A large, diverse, and growing economy of 34 million people, which has been performing better recently than the nation's economy; Prospects for substantial budget shortfalls in fiscals 2002 and 2003, despite a recent midyear fiscal 2002 budget cut of $2.2 billion, with structural deficits likely continuing for the foreseeable future because of the large number of onetime revenue measures in the governor's proposed 2003 budget; A recently weakened general fund cash position, exacerbated by the state's difficulties in selling power revenue bonds to reimburse the general fund for $6.1 billion of power purchases; however, cash flow is helped by the availability of substantial amounts of other internally borrowable funds; Debt levels that...
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