Treasurer Says Flooding Market With Bonds Will Mean Bigger Debt
Sacramento, CA — State Treasurer Phil Angelides is warning that approving a big bond measure to deal with California´s massive infrastructure needs could saddle
the state with significantly more debt and eat into funding for schools and other programs.
He says the state should look for other ways to pay for infrastructure improvements instead of taping its general fund to pay off more bond debt.
Those funding sources could include assessments on businesses or property owners that would benefit from the improvements.
Angelides issued his warning today as Governor Schwarzenegger prepares a plan to deal with a backlog of transportation, flood control and other infrastructure projects.
Aides say the governor is considering a package that would include some bond financing.