By Marc Lifsher
December 5, 2012, 3:32 p.m.
SACRAMENTO — California has made “notable progress” in improving the state government’s financial health since the recession and the economic crisis of 2008 and 2009, according to Fitch Ratings.
The New York debt-rating service issued a statement Wednesday praising the state for winning approval of two tax increase initiatives last month and for making significant spending cuts over the last several years.
“The state’s fiscal recovery is incomplete and challenges remain, but continued economic improvement, a demonstrated commitment to more sustainable budgetary operations and progress on reducing budgetary debt would be viewed positively by Fitch,” said Doug Offerman, a senior director.
Fitch credited voters with approving Proposition 30 on Nov. 6. The measure temporarily raises the personal income tax on couples earning more than $250,000 annually for the next seven years. That will generate about $6 billion in annual revenue.
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