What role do ratings agencies such as Moody's, Fitch Ratings, and Standard & Poor's play in the California budgeting process? They have a line-item veto on expenditures in the budget passed by the legislature. They determine the constitutionality of budget provisions or propositions. They provide guidance to the legislature on which expenditures are most cost effective. They release information to the public on how likely California is to repay its bonds.