Wednesday, December 17, 2008
A state panel that oversees loans for infrastructure has voted to stop financing nearly all construction projects in California.
The three-member Pooled Money Investment Board voted today to halt nearly $4 billion in loans for almost 2,000 infrastructure projects throughout the state -- everything from highway improvements to new schools.
The board says the Legislature's failure to address California's massive budget deficit, as well as the frozen credit market, forced them to take the unprecedented action.
State Treasurer Bill Lockyer says the move was unavoidable.
Lockyer : We would wish to do none of what we had to do today. It's our duty and the legislature's just got to get a balanced budget enacted soon .
The state is expected to run out of operating cash as soon as February.