[Grampa Dave]

What if these "loans" from CalPers and the various state departments were the result of a recognition that the grade Z Kali Junk Bonds for used Electricity would not sell on Wall Street. So Herr Davis and his SS chronies forced various state agencies and Cal Pers to "loan" money to the state for the short fall that is/will be created without these junker bonds.

There have been enough posts just on Free Republic warning that CalPers might have to pick up these worthless bonds for electricity used last year. This alone might prevent CalPers from swallowing up a large amount of these junker bonds as the word would be out.

So an state of emergency is kept open, then the governor can "borrow: money from various state agencies to pay back the electricity costs for the electricity purchased and used by us last year.

To hide this even deeper, these "borrowed" funds go into the general funds. Then checks are written each month to pay the providers for the used electricity. Then, after the election, all remaining costs will be just rolled over into the general funds. Then, CalPers and the " other loaners" will get paid back sometime next year.

Herr Davis and his little SS Chronies are making Arthur Andersen, Enron and World Com look lilly white re their accounting procedures. Davis's accounting procedures seem to be coming from an unpublished Stephen King book, "Accounting Procedures for Governors from the Dark Side of Liberal Hell!"

[Ernest_at_the_Beach]

Nice description of the scam scheme!

Now if Simon can get his advisors to let him attack Davis over this, we can get a real campaign going!

[snopercod]

I think you nailed it, Gramps. Davis had to come up with some fast cash to satisfy Wall Street.

You saw Davis' latest EO, didn't you? It says:

IT IS ORDERED that Paragraph B of Executive Order D-42-01 is amended to read: "The Department is authorized and directed to utilize the proceeds of the loans to make payments to purchase electric power and natural gas for generation of electric power to mitigate the effects of the emergency, or to reimburse the Electric Power Fund for expenditures made prior to the date hereof for such purchases, and for costs related thereto and to fund capitalized interest and reserves required in connection with such loans."

[willyone]

As of now there is still no state budget. This means that state employees are being paid minimum wage. So far the pubbies have held out. This state is going down the tubes so fast it is hard to believe. This will be a practice run for when all the deficits catch up to the feds.