Capitol Alert
The latest on California politics and government
October 7, 2010

State Controller John Chiang hasn’t said whether the state can successfully avoid formal IOUs with passage of a budget today, but the package includes a bill that would help the state conserve enough cash over the next month.

The legislation, Senate Bill 864 or Assembly Bill 1624, would authorize fiscal officials to defer $5.5 billion in payments to K-12 schools, community colleges, the California State Teachers’ Retirement System and Cal Grants for CSU and UC students.

The deferrals are intended as a bridge solution until the state successfully completes its regular short-term cash borrowing from Wall Street. That typically takes three to five weeks.

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