State Treasurer Bill Lockyer met with U.S. Rep. Barney Frank, D-Mass., in late March to discuss U.S. government help with state financing.
Posted on 04/15/2009 7:56:39 AM PDT by SmithL
Facing what could be the largest cash flow problem in state history, California officials are asking the federal government to back billions of dollars in short-term loans the state must seek in July.
"We're going to need cash-flow borrowing the likes of which California has never seen, at a time when market and economic forces are stacked against us," said Tom Dresslar, spokesman for state Treasurer Bill Lockyer. "That's a recipe for calamity."
While the state routinely borrows money at the start of fiscal years on July 1 by issuing interest-bearing Revenue Anticipation Notes, or RANs, a combination of factors have conspired to form a mountainous hurdle this time around.
Those factors include the sheer size of the amount needed – at least $13 billion – the state's woeful credit rating and the generally sorry state of the nation's financial markets.
Lockyer and other state and local officials have been quietly exploring the idea of doing what hordes of private financial and insurance enterprises have done in the past year: Ask Uncle Sam for help.
Precisely what kind of help it would be hasn't been decided. A spokesman for the House Financial Services Committee, chaired by Rep. Barney Frank, D-Mass., confirmed that Lockyer had met with Frank in late March, and that Frank was in the process of drafting legislation designed to aid states and local governments with problems similar to California's.
"There is something in the works," said spokesman Steve Adamske, "and that should be drafted by the end of this month ... there are several ideas being considered."
One idea is that buyers of RANs issued by states and local governments would be able to resell them to the federal government. The funds would come from the Troubled Assets Relief Program, or TARP, the $700 billion program...
(Excerpt) Read more at sacbee.com ...
State Treasurer Bill Lockyer met with U.S. Rep. Barney Frank, D-Mass., in late March to discuss U.S. government help with state financing.
California - Finally a State Louisiana can make fun of
NO!!!!!!
“Revenue Anticipation Notes!!” Hey, I gotta get me summa them, huh? In other words, as usual, Americas taxpayers are footing the bill for Kalifornias love of illegals.
California demands US taxpayers fund its IOUs...
Can I play loanshark here somehow?
“Hey, Barney! Wanna meet Spike?”
“No thanks, Biww! I’m awweady fuww!”
Think the feds would fire the governor as a part of the package?
“a combination of factors have conspired to form a mountainous hurdle this time around. “
Translation: we spend too much
Let me speak for the other 49 states when I say:
F U Kalifornia!
Stupid politics got you into this mess, and the rest of us should not reward you for that.
—as I have been commenting for several years, Commiefornia’s politicians (largely of both flavors) have been counting on Uncle Sugar to eventually bail them out-—
“Revenue Anticipation Notes”
I’ll gladly pay you Tuesday for a hamburger today
Let me remind you that your former governor who became POTUS REFUSED to secure the border & deport the MILLIONS of illegal aliens in CA and because of that it is costing CA ALONE TEN BILLION DOLLARS A YEAR.
So don't think your boy from TX didn't play a HUGE part in the mess we're in, not only in CA, but throughout America!
I owe you NOTHING CA.
Oh really?
Well, thanks to the MILLIONS of Californians who have fought & died for this country so you had the FREEDOM to ride a NAZI motorcycle; you owe us and every other Soldier, Sailor, Airman & Marine in America...BIG TIME!
Class Dismissed
NEVER, I don't drink your crappy wine or watch your crappy movies.
But you’re on our “crappy” website, genius.
I hate repeating myself, so go get an adult to read & explain my last post to you. FREEDOM IS NOT FREE!
Do you eat cheese, fruits, nuts, vegetables, pork, chicken, beef? Very good chance some of it came from CA. It’s not just about wine and movies.
That being said, I don’t want you to owe CA anything. I don’t want your kind of help, I don’t want ANYTHING from you. Got it? Conservative Californians are on your side, yet folks like yourself don’t make it clear to whom you’re venting.
SZ
California is also delaying its payments to the Counties. I know the mental health program our County operates for the State is more than a million dollars in arrears in reimbursement from the State. That means we have to borrow from the school districts to pay the bills. Each year, we now need to borrow $10 million to make cash flow needs. (Revenue anticipation notes.) Most of our revenue comes in in November and December, but bills are every month. Because of this year’s budget debacle, our Gnereal fund reserves have dropped from $5 million to under a $million.
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