Posted on 07/25/2005 8:14:51 AM PDT by calcowgirl
Although Gov. Arnold Schwarzenegger's new spending plan contains less borrowing than he initially proposed, California still is strapped with more than $25 billion in debt from a variety of loans and bond sales used to help cover budget shortfalls during the last five fiscally dismal years.
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Elizabeth Hill, the state's nonpartisan legislative analyst, has estimated the state will pay about $4 billion next fiscal year to begin chipping away at its budget-related debts and interest.
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Davis' budgets, for instance, included the sale of bonds to be paid back in future years with the state's proceeds from tobacco lawsuit settlements and bonds to help pay state worker pensions.
After he took office, Schwarzenegger persuaded voters to grant the state the authority to sell up to $15 billion in deficit bonds to help pay down accumulated debt. He also has put in other borrowing in his budgets, including pension obligation bonds and the sale of bonds backed by the promise of future tribal gaming agreements.
After he won support for the deficit bond package in 2004, Schwarzenegger promised to "cut up the state's credit card."
His new budget still uses borrowing, although Schwarzenegger's finance spokesman said the governor's budgets have helped to gradually wean the state from building up new debt.
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In January, Schwarzenegger proposed about $3 billion more in borrowing than appeared in the final budget. He originally called for the sale of $1.7 billion in deficit bonds - which the state still has the authority to issue because it has not used the full $15 billion from Proposition 57. He also proposed that the state borrow gasoline sales tax revenues to help fill its general fund, rather than directing the money to transit and highway projects.
(Excerpt) Read more at sacbee.com ...
Proposition 77, the "Live Within Our Means Act" "Spending Cap" will defer billions more in expenses and authorize yet MORE bonds/borrowing.
$pend $pend $pend ..
The SS California sailed into the night, knowing full-well the dangers ahead, but even that wasn't enough to change course.
No, T'is Socialist UTopia or Bu$T, Dammit!
Full $pend Ahead!
Proposition 77 76, the "Live Within Our Means Act" ...
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