Collateral damage

L.A. County runs a pretty tight financial ship, but the state budget crisis has caused S&P to cut the rating on $1.1 billion in short-term notes that the county plans to sell this week. The tax-free yields will probably run between 0.45 percent and 0.6 percent. Before the downgrade they were looking at as little as 0.4 percent. From Tom Petruno at Money & Co.:

S&P said it was concerned about possible state welfare-funding cuts that could boost the county's own welfare outlays by more $400 million a year. Glenn Byers, assistant treasurer for the county, said S&P's assessment was a "worst case" scenario, and that it was wrong to assume the county wouldn't pare back spending to counter whatever hit it takes from the state's cuts.

More by Mark Lacter:
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Next story: Supremes lift stay

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Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
 
Mark Lacter, business writer and editor was 59
The multi-talented Mark Lacter
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