Far West

SAN FRANCISCO — While acknowledging the continuing severity of California’s budget crisis, Gov. Arnold Schwarzenegger highlighted new spending proposals during his final state of the state address yesterday.

What do you get when you mix a protracted recession with a series of overly optimistic projections and a credit guarantee from a borderline insolvent bond insurer?

WASHINGTON — The Treasury Department may not modify a planned test of proposed solid-waste bond rules criticized by market participants, but could provide a remediation process for issuers that run afoul of the test, department officials indicated yesterday.

SAN FRANCISCO — Mike McGinn took the oath of office as Seattle’s new mayor Monday, and focused his first executive actions on the city’s expected budget shortfall.

WASHINGTON — For cash-strapped state and local governments that have critical transportation infrastructure needs, but no money to pay for them, the coming year will be bittersweet.

WASHINGTON — A Municipal Securities Rulemaking Board proposal on priority of orders in new-issue retail periods would impose new standards on dealers that are confusing or contradictory and could lead to higher borrowing costs for issuers, the Securities Industry and Financial Markets Association warned.

WASHINGTON — The economy is improving at the national level but state and local governments face further revenue declines and dismal financial conditions that pose a risk of lowered credit ratings, market participants warned in their outlooks for this year.

SAN FRANCISCO — California’s budget problems will be back in the spotlight this week.

SAN FRANCISCO — Citing the recession’s impact on tax revenue, Moody’s Investors Service on New Year’s Eve revised its outlook to negative from stable on Washington’s Aa1 general obligation bond rating.

CHICAGO — As the largest buyer of qualified school construction bonds, Guggenheim Partners LLC has purchased a piece of nearly every QSCB issue since the federal stimulus act launched the new type of tax-credit bond earlier this year.