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Hope for California budget deal as IOUs planned



By Jim Christie
03 July 2009 @ 10:24 am ET


Registered warrants, or IOUs, are printed at the State Controller's office in Sacramento, July 2, 2009. (REUTERS / Max Whittaker)
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California's finance officials are aiming to reassure the municipal debt market in anticipation of having to sell up to $9 billion in short-term debt after a budget is approved.

But Wall Street has its doubts. "Absent a credible budget revision package, we believe the state may suffer insufficient investor confidence in its finances to successfully place such an offering," rating agency Standard & Poor's said on Wednesday.

S&P also warned that if California's budget is not settled soon, the state's A-credit rating, already the lowest of any of the 50 states, is at risk of falling.

State Treasurer Bill Lockyer's office now doubts it will be able to sell short-term revenue anticipation notes (RANs) for state cash-flow needs as it had planned because of the budget turmoil. Revenue anticipation warrants remain an option, but would be more expensive for the state.

"We're exploring a variety of avenues to increase the potential market for our short-term cash-flow borrowing," Lockyer spokesman Tom Dresslar said. "The way the fiscal picture looks at this time, RANs do not look likely."

Copyright 2009 Thomson Reuters. All rights reserved.

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1.
Jul 3, 2009 4:23pm

We are being forced-fed immigration reform, but we should not reward foreign nationals who break the law. As ICE begins its auditing of any business who is believed to be sheltering illegal workers. We as a nation should implement Italy's brand new illegal immigration law. Instead of a slap on the wrist by our laws, we should demand that Washington makes illegally immigrating a felony with appropriate consequences. As Italy we should give the legal population the right to detain foreign nationals who shouldn't be here. After it's inception we can then use a points system to settle new immigrants, who are highly skilled, with professional scientific, computer or business credentials. American taxpayers can no longer afford to subsidize the businesses and illegal families with handouts. That's the predicament of California--SANCTUARY STATE--has brought upon itself, and its hurting population. Now the State must issue IOU's, extract higher taxes and restrict health care to low income legal citizens. It seems like companies have a right to hire cheap labor and not pay decent, living wages for Americans. When the Status Quo has a strangle hold on our politicians immigration laws are weakened or killed, health care remains the domain of the wealthy insurance companies and the American public gets distracted by useless issues that doesn't effect their bank accounts. With yet another path to citizenship in this nations future, we had better take careful notice of the consequences? Without any doubt to process 13 to 20 million plus illegal immigrants is, according to Robert Rector of the reputable non-profit Heritage Foundation $2.5 TRILLION DOLLARS. It’s an accumulation of procedures necessary to investigate backgrounds of all those who come out of the proverbial shadows. But if and when another of these AMNESTIES is forced past the American voters, millions more will be equally ready to head for America, expecting a ninth Amnesty. The major one in 1986 was rife with fraud, a absolute disaster and was never enforced, that’s why our country has uncontrolled illegal immigration? If we command of the Democratic leadership who originally tried to kill E-Verify, such as Sen. Harry Reid, House Speaker Nancy Pelosi, we have an ongoing chance of combating the illegal immigrants of stealing further into the workplace. With Obama admitting that unemployment is farther on the rise, why would they be entering discussions of forcing another Amnesty down our throats. E-Verify is rapidly catching on and accelerating in the workplace and should not be denied to the American worker. CALL YOUR SENATOR AND REPRESENTATIVE AND DEMAND It should be fully funded, permanent and an a Federal identity check for everyone working in America? NUMBERSUSA, CAPSWEB for more details. ICE has a phone number to call when suspicious activity is determined in the Factory, office, restaurant or any industry.

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