Analyst: Calif. May Need to Borrow $20 Billion Next Year
Thursday, May 7, 2009
California California could have some trouble paying its bills in the near future. The state's non-partisan legislative analyst says the state may need to borrow more than $20 billion next fiscal year to keep paying its bills -- an amount the analyst says California would have a hard time getting.
Assembly Speaker Karen Bass was in Washington lobbying the federal government for help.
She says she's hopeful the feds will guarantee the state's short-term borrowing:
"They were very open to looking at a variety of different ways," Bass says. "Is it TARP funds, is it Executive Order, is it legislation?"
Typically those loans are guaranteed by commercial banks, but with the current economic situation, Bass says that's unlikely.
The legislative analyst cautions lawmakers that federal help often comes with strings attached.
California borrows money most years to help pay its bills - but the legislative analyst says $20 billion would be unprecedented.