...The 'AA¡' rating on the No Place Like Home (NPLH) revenue bonds reflects the high resiliency of the pledged revenue stream and a relatively volatile PIT on higher earners that is expected to experience strong growth over time, consistent with expected growth in the California economy. The rating assumes the maximum annual service contract payments permitted in statute and approved by voters of $140 million per year to pay debt service and full issuance of the $2 billion authorized by the No Place Like Home Act of 2018. The rating is capped at the state of California's Issuer Default Rating (IDR, 'AA') as the state collects the pledged revenues and the bond structure relies on transfers and true-ups between the state general fund and the mental health services fund (MHSF), from which service contract payments will be paid. Economic Resource Base: California's economy is unmatched among U.S. states in its size and diversity and is generally stable despite a considerable presence in industries...
