My home town downgraded!

The municipal funding crisis is accelerating in California.

Fresno — “The Best Little City in the USA” — may be California’s fifth largest city with a population of 510,000. And it may be the Raisin Capital of the United States. But as of October 2, its credit rating has been downgraded by Standard & Poor’s municipal credit rating service by three notches from AA to A.

Worse, it’s been downgraded from AA- to A- on its lease revenue bonds.

Further downgrades are  in the offing.

The city’s general fund budget is technically balanced for 2011. But of concern is the city’s reserve fund, which has been nearly depleted. Deficits have been rolled into long-term debt, leaving the city in a vulnerable situation should tax revenues further decrease. Cal Watch

Fresno political leaders simply don't have the brains to avoid bankruptcy, they should embrace it.