Sacramento, CA – Governor Schwarzenegger is dropping a proposal to borrow money from the California Public Employees Retirement System.
The Governor and other state lawmakers had been looking at borrowing $2 billion to help offset the $19 billion deficit. Schwarzenegger states, “California’s leaders have to solve the budget deficit in a responsible way, and any idea to borrow money from the CalPERS pension fund is off the table. The Legislature must pass a budget that lets us live within our means, and includes the necessary reforms to fix our broken budget process and rein in out of control pension costs.”
The announcement came after Schwarzenegger and legislative leaders met for nearly three hours yesterday to discuss the budget.