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SACRAMENTO – California State Treasurer John Chiang has issued the annual Debt Affordability Report in which he laid out how the continued strength of the state’s credit profile, coupled with the impact of changing tax policies on the supply and demand for tax-exempt bonds, contributed to interest rates on California’s bonds outperforming those of other municipal issuers in 2017-18.
Since the last Debt Affordability Report, California has sold $6.8 billion in general obligation bonds, in four offerings.
The report also highlights the state’s high-grade ratings from all three of the major credit-rating agencies: Aa3 from Moody’s, AA- from Fitch, and AA- from S&P.
“The Golden State’s high ratings give us the confidence to explore and tap into the potential of green bonds for financing the fight to counter global warming,” said Treasurer Chiang. “Additionally, we are moving forward on the creation of a dynamic, practical, and profitable market for green bonds, to pay for billions of dollars of climate-friendly infrastructure. We already know the future is green, but the essential question of how we finance the conversion from a fossil fuel-based economy and infrastructure to cleaner, greener, and more sustainable alternatives remains.”
In late August, Treasurer Chiang signed the Green Bond Pledge on behalf of California, making the state the first in the nation to pledge to use green financing to combat climate change. This pledge commits the world’s fifth largest economy to using green bonds to efficiently raise billions of dollars in new and affordable capital to build climate-friendly infrastructure.
As noted in the report, at the end of the current fiscal year, California will have accumulated nearly $14 billion in rainy day reserves – a distinctly different picture from the one following the financial crisis and the subsequent Great Recession. The Legislature has passed eight on-time budgets in a row.
And the state’s long-term liabilities – post-employment benefits and pension obligations being the most crucial – are in a much stronger position today to weather an economic downturn. As a result of all these efforts, investors have responded affirmatively and offered the state more favorable rates than have been seen in the last 10 years.
Read the full 2018 Debt Affordability Report here.
Since the last Debt Affordability Report, California has sold $6.8 billion in general obligation bonds, in four offerings.
The report also highlights the state’s high-grade ratings from all three of the major credit-rating agencies: Aa3 from Moody’s, AA- from Fitch, and AA- from S&P.
“The Golden State’s high ratings give us the confidence to explore and tap into the potential of green bonds for financing the fight to counter global warming,” said Treasurer Chiang. “Additionally, we are moving forward on the creation of a dynamic, practical, and profitable market for green bonds, to pay for billions of dollars of climate-friendly infrastructure. We already know the future is green, but the essential question of how we finance the conversion from a fossil fuel-based economy and infrastructure to cleaner, greener, and more sustainable alternatives remains.”
In late August, Treasurer Chiang signed the Green Bond Pledge on behalf of California, making the state the first in the nation to pledge to use green financing to combat climate change. This pledge commits the world’s fifth largest economy to using green bonds to efficiently raise billions of dollars in new and affordable capital to build climate-friendly infrastructure.
As noted in the report, at the end of the current fiscal year, California will have accumulated nearly $14 billion in rainy day reserves – a distinctly different picture from the one following the financial crisis and the subsequent Great Recession. The Legislature has passed eight on-time budgets in a row.
And the state’s long-term liabilities – post-employment benefits and pension obligations being the most crucial – are in a much stronger position today to weather an economic downturn. As a result of all these efforts, investors have responded affirmatively and offered the state more favorable rates than have been seen in the last 10 years.
Read the full 2018 Debt Affordability Report here.
- Details
- Written by: California Treasurer’s Office
SACRAMENTO – Due to the staggering losses suffered by thousands of residents from the 2018 wildfires, California Insurance Commissioner Dave Jones is asking insurers to assist overwhelmed wildfire survivors by voluntarily easing detailed personal property home inventory requirements and following the lead of other insurers providing at least 75 percent and up to 100 percent of contents (personal property) coverage limits without the submission of a detailed inventory.
The notice issued Thursday, acknowledges that the department is aware of and applauds the efforts of certain insurers that have already gone above and beyond the Voluntary Expedited Claims Handling Procedures and have made significant efforts to assist and accommodate survivors by offering, in some cases, up to 100 percent contents limits payment without a personal property inventory.
However, due to the massive scale of these wildfires Jones is requesting all other property insurers follow suit by providing similar accommodations and is asking insurers to notify the department by Oct. 31, 2018, whether they will comply and what percentage they will provide.
Those insurers offering an amount less than 100 percent should allow policyholders the ability to recover additional benefits, if the policyholder subsequently completes a full inventory.
"The Carr and Mendocino Complex fires rank among the most destructive wildfires in California's history," said Insurance Commissioner Dave Jones. "Entire communities were decimated with residents suffering staggering losses of not only property, but tragically loss of life and injuries. I'm asking property insurers to ease the burden on traumatized survivors by voluntarily providing at least 75 percent of contents coverage without the onerous requirement of a detailed home inventory, so survivors may get on with patching their lives back together."
The commissioner's request applies to all insured homes that suffered a total loss, unless the insurer has reason to believe the home was not furnished.
The department advises policyholders already working with a claims adjuster to develop a settlement plan that best serves their needs, which may include taking the time to complete a personal property home inventory.
The notice issued Thursday, acknowledges that the department is aware of and applauds the efforts of certain insurers that have already gone above and beyond the Voluntary Expedited Claims Handling Procedures and have made significant efforts to assist and accommodate survivors by offering, in some cases, up to 100 percent contents limits payment without a personal property inventory.
However, due to the massive scale of these wildfires Jones is requesting all other property insurers follow suit by providing similar accommodations and is asking insurers to notify the department by Oct. 31, 2018, whether they will comply and what percentage they will provide.
Those insurers offering an amount less than 100 percent should allow policyholders the ability to recover additional benefits, if the policyholder subsequently completes a full inventory.
"The Carr and Mendocino Complex fires rank among the most destructive wildfires in California's history," said Insurance Commissioner Dave Jones. "Entire communities were decimated with residents suffering staggering losses of not only property, but tragically loss of life and injuries. I'm asking property insurers to ease the burden on traumatized survivors by voluntarily providing at least 75 percent of contents coverage without the onerous requirement of a detailed home inventory, so survivors may get on with patching their lives back together."
The commissioner's request applies to all insured homes that suffered a total loss, unless the insurer has reason to believe the home was not furnished.
The department advises policyholders already working with a claims adjuster to develop a settlement plan that best serves their needs, which may include taking the time to complete a personal property home inventory.
- Details
- Written by: California Department of Insurance
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