On top of the $51 billion in bonds yet to be repaid, the state has a backlog of $30 billion worth of borrowing that has been approved for things such as school construction, housing and environmental programs but has yet to be sold. The $3-billion measure that voters approved in November to promote stem cell research also is in that pool. Few states have ever taken on such proportionately high levels of debt in their budgets. In the cases of those that have, it almost always involved paying for infrastructure programs that helped drive their economy. That is where California is different. Here, taxpayers borrowed just so the state could keep spending on day-to-day programs without raising taxes.
The state's situation is made worse by all the additional loans it has drawn against itself akin to using one credit card to pay another. Billions of dollars that were supposed to be going to road projects, schools and local governments have instead been used to narrow the past deficit. Much of that money has to be paid back now.