In Fitch's view, the fiscal 2014 budget released by California's Governor Brown on May 14 would continue the disciplined approach to fiscal management shown by the state in recent years, with a prudent revenue forecast and restrained spending growth proposed.

In March, Fitch recognized the improvement in California's fiscal management by revising the rating outlook on the state's A-minus rated GOs to positive, noting at the time that rating improvement would be contingent on sustained budgetary discipline.

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