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California Ballot Holds Credit Risk for School Districts

Source: Reuters | California | November 2, 2012

California GOP Ponders Life in the Irrelevant Lane

If voters in California next week reject ballot measures to raise taxes, school districts in the Golden State will be among the first victims of spending cuts - a major concern not only for teachers and parents but also bondholders.

According to the latest polls, support for Proposition 30, the measure Governor Jerry Brown proposed to raise personal income and sales taxes, stands at below 50 percent for the November 6 vote. A rival measure - Proposition 38, which would also increase taxes - appears to be backed by even fewer voters.

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California GOP Ponders Life in the Irrelevant Lane

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