Sacramento, CA — A state panel that oversees loans for infrastructure has voted to stop financing a majority of construction projects in California.
The Associated Press reports that the three-member Pooled Money Investment Board voted today to halt nearly $4 billion in loans for almost 2,000 infrastructure projects throughout the state, everything from highway improvements to new schools.
More information is expected to be known in the coming days as to which projects will be directly affected, and whether this will include local projects like the Angels Camp Bypass.
The Board says the Legislature´s failure to address California´s massive budget deficit, as well as the frozen credit market, forced them to take the unprecedented action.
State Treasurer Bill Lockyer, who heads the board, warned lawmakers of the possible move last week if they didn´t act immediately to close a $14 billion budget gap for the current fiscal year. California is expected to run out of operating cash as soon as February.
Written by BJ Hansen