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Thanks for the post. Can you explain more fully the ins and outs of RANs and RAWs? Are they secured by bonds? What is the interest rate on such?

It will be interesting to watch the bickering and back-stabbing that goes on as CA Legilators tackle the task of trimming billions off the state budget. It won't be pretty.

It will also be interesting to see if the GOP gubernatorial candidate, whoever it may be, can successfully damage Davis on this issue.

So much to watch--can Davis make lemonade out of these lemons? You can bet he won't do the right thing and get behind real belt-tightening--at least not in 2002. And if the belt-tightening is delayed beyond 2002, whoever is elected governor is going to need a corset to get the state's finances in order.

I can't answer your financial questions. I was hoping that Robert357 would do that, but I think he has said he is very busy right now. From the California Dept. of Finance site:

Revenue Anticipated Warrants (RAWS)
A RAW is a reimbursement warrant (Revenue Anticipation Warrant) issued when there is expected to be insufficient monies in the General Fund to pay all current obligations of the State.
The key distinction between a RAN and a RAW is that to date RANs have never been issued across fiscal years.

Sounds like an IOU...