Far West

Santa Cruz County has said it may have to draw on bond reserves to make a Sept. 1 debt service payment for redevelopment bonds if it is forced to make the payments of former redevelopment tax money as outlined by California.

Standard & Poor's downgraded Fresno, Calif.'s issuer rating to BBB from A due to its continued weak finances.

California's state auditor said in a report Tuesday that San Jose officials provided "inadequately supported" estimates in bond documents that said its retirement costs would increase to $400 million by fiscal 2016.

The IRS is auditing $98.5 million of general obligation refunding bonds that the State of Texas Water Financial Assistance issued in 2002.

The Securities and Exchange Commission will not pursue regulations aimed reducing the susceptibility of money market mutual funds to market runs, SEC chairman Mary Schapiro said in a statement Wednesday night.

The U.S. is headed for a deep recession in the first half of 2013 if Congress fails to avert nearly $500 billion in tax hikes and federal budget cuts from the "fiscal cliff," the Congressional Budget Office warned Wednesday.

Four municipal market groups are urging the Treasury Department and the Internal Revenue Service to publish guidance on determination of issue price for tax-exempt, tax credit and direct subsidy bonds.

Four transportation projects will be expedited as part of the president's "We Can't Wait" program, the Obama Administration announced this week, including the $3.5 billion Columbia River Crossing linking Vancouver, Wash. and Portland, Ore.

California says 27 local governments owe more than $120 million of redevelopment agency tax money.

Moody's Investors Service is considering across-the-board and targeted downgrades in California in the aftermath of the state's recent municipal bankruptcies.