California Rallies as Tax Win Signals Debt Upgrade
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California debt is rallying the most in three months as Governor Jerry Brown’s tax-vote victory leads investors to bet the state will get its first credit-rating upgrade since 2006.
Proposition 30, which won voter approval Nov. 6, temporarily raises some levies for top earners in the most-populous U.S. state. Passage averted $5.5 billion of cuts to public schools. The 74-year-old Democrat counted on the tax revenue to close a $16 billion deficit in the budget for the year that began July 1.