California could have $15 billion shortfalls

The San Francisco Chronicle reports:

The plan signed by Gov. Arnold Schwarzenegger this week to balance the state's budget could leave California facing shortfalls in future years of more than $15 billion, according to an analysis released Thursday by a major Wall Street credit rating firm.

Moody's also criticized California's plan to take more than $1 billion from counties' redevelopment agencies this year to help close its $24 billion deficit, saying that could jeopardize those agencies' credit ratings.

Moody's is one of several firms, including Fitch Ratings, that downgraded the state's credit ratings this month after legislators failed to pass a budget by the June 30 deadline.

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