California Lawmakers Mull Bond Issue to Close the Gap

Finestone, Deborah
March 2003
Bond Buyer;3/25/2003, Vol. 343 Issue 31600, p1
Trade Publication
A group of California lawmakers plan to float billions of dollars in bonds to pay off part of the state's 35 billion dollar deficit over several years because they can't agree on any other solution to the state's financial problems as of March 25, 2003.One way to ease the amount of cuts or taxes is to sell bonds and pay them off over a number of years, possibly three to five, according to Dan Pellissier, chief of staff to Assemblyman Keith Richman, R-Northridge.Following the1.6 billion dollars in investment losses, Orange County, in the state filed for the largest municipal bankruptcy in 1994.Over the next two years it issued 760 million dollars of tax-exempt certificates of participation and 278 million dollars of tax-exempt recovery bonds, along with 123 million dollars of taxable refunding pension bonds, under state enabling legislation.


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