Fears about California budget "valid", says state treasurer

California: passed budget on October 8

Worries about over-optimistic assumptions contained in California's $86.6 billion budget are valid, says Sacramento-based state treasurer Bill Lockyer, speaking exclusively to Risk.

The budget was passed on October 8 after an all-night legislative session and a record 100-day delay. Although it goes some way towards addressing California's $19.3 billion deficit, commentators and rating agencies have expressed concern at its assumptions for future revenue.

In a note on October 18, analysts at New