Governor Davis has abandoned a proposal to postpone payments of the state´s retirement contributions. This is instead of endorsing refinancing state debt to help fill California´s budget gap. State Treasurer Phil Angelides says the state could save more than one billion this year and next by restructuring its debt. And Davis aides say he now favors that option over his proposal to save 880 million dollars by deferring payments to the California Public Employees´ Retirement System and the State Teachers Retirement System.
Officials say refinancing the state´s debt will provide 200 million dollars more savings than the pension plan that can be set aside to help make up for additional shortfalls the state might
face in May.