State Treasurer Warns Against Excessive Borrowing
Sacramento, CA — State Treasurer Phil Angelides is warning that the state should not borrow any more money to try close its budget deficit.
In his annual report to the Legislature, Angelides said interest debt is already a significant expense for the state.
California´s debt is expected to reach $6 billion next year. Angelides says the cost alone to service the debt in the 2007-2008 fiscal year could be as much as $3.5 billion.
That´s more money than the state pays to support the University of California system.
Angelides, a candidate for the Democratic nomination for governor next year, also criticized the nearly $11 billion in borrowing approved by voters last year.