Debt Ceiling Crisis Threatens State Budgets, Credit Ratings, Governors Furious

Debt Ceiling Crisis Threatens State Budgets, Credit Ratings, Governors Furious: "ANNAPOLIS, Md. -- Virginia's governor is livid that his famously tight-fisted state could face higher borrowing costs to build roads and schools. Maryland has put off a $718 million bond sale for three days because of the current financial uncertainty. And California plans to borrow about $5 billion from private investors next week to ensure it can cover day-to-day operating expenses should the federal government default on its debt.

As President Barack Obama and congressional leaders struggle to reach a debt-limit deal, state government leaders are bracing for the impact on their budgets and economies of a threatened Aug. 2 federal government default"