Standard & Poor’s has lowered California’s credit rating due to the state’s unresolved budget deficit, the state politics blog Calitics reported Tuesday.
California’s credit rating is the lowest in the U.S., and this move will negatively affect the current budget crisis as interest rates for loans to the state government rise. The state government is currently working close a $24 billion budget gap that has already delivered cuts to education.
This rating also comes at a time when state Democrats are discussing increasing taxes to bridge the deficit, the Associated Press reports. State Republicans have vowed to not support any budget that includes tax hikes.
