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CALIFORNIA REVISES REVENUE ESTIMATES FOR FISCAL YEAR 1992 POTENTIAL FOR CASH SHORTFALL; MOODY'S TO MONITOR DEVELOPMENTS

 CALIFORNIA REVISES REVENUE ESTIMATES FOR FISCAL YEAR 1992
 POTENTIAL FOR CASH SHORTFALL; MOODY'S TO MONITOR DEVELOPMENTS
 NEW YORK, April 27 /PRNewswire/ -- New revenue projections by the state of California, based upon final 1991 personal income tax collections, indicate that receipts for fiscal year 1992 may fall $2.0 billion below the governor's budgetary estimates made in January. Given the magnitude of the revisions, the state may exhaust its remaining borrowable resources by the end of the fiscal year. Assuming no remedial actions, the treasurer's office now estimates a potential $232 million cash deficit on June 30. State officials are currently discussing several alternatives for assuring timely payment of all the state's obligations including $4.1 billion of revenue anticipation notes (1991 Series B dated August 15, 1991 and 1992 Series A dated March 3, 1992, due on June 30, 1992), but a formal plan has yet to be developed.
 Even given the magnitude of the projected shortfall, the state of California has the resources and capability to assure timely note repayment. However, prompt and responsible action by the governor, controller and treasurer is imperative in preserving the current level of note security. Moody's will continue to monitor the situation pending the state's development of a plan to assure a positive ending cash balance.
 For further information on the state of California's credit position please consult our February 11 credit report issued in conjunction with the lowering of the state's long term rating from Aaa to Aa1.
 This comment is issued in conjunction with the sale of $278.88 million of State Public Works Board Lease Revenue Bonds to be priced April 28. At this time Moody's is assigning a Con.(Aa) to the issue. For more details on this offering please refer to Moody's forthcoming municipal credit report.
 -0- 4/27/92
 /CONTACT: George W. Leung, 212-553-0342, or James Dearborn, 212-553-1910, both of Moody's/ CO: ST: California IN: SU: RTG


TQ-HM -- NY100 -- 3356 04/27/92 16:26 EDT
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Publication:PR Newswire
Date:Apr 27, 1992
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