For first time in 15 years, California likely to avoid short-term borrowing from Wall Street

California can handle all of its cash flow needs in-house, State Controller Betty Yee said Monday, the first time since before the dot-com bust that that the state will make it through a fiscal year without turning to Wall Street for short-term loans to smooth the ebb-and-flow of tax revenue.

The state has used “revenue anticipation notes,” known as RANs, in every year since the 2000-01 fiscal year. After that, Silicon Valley billions gave way to shortfalls, and the state suffered chronic budget problems for much of the next decade, including a low point during the recession that hit in 2008.

Monday, Yee’s office reported that the $5.7 billion in state revenue last month was virtually identical to what lawmakers predicted in the June budget package. In addition, the state has “unused borrowable resources” in various special funds totaling $26.1 billion, about 11 percent more than anyone expected.

That is more than enough money to cover the state’s short-term cash needs when general fund spending temporarily exceeds revenue, Yee’s office said, without any need for RANs – and the interest expense that comes with using them.

Via: http://www.sacbee.com/news/politics-government/capitol-alert/article30659625.html

Read more here: http://www.sacbee.com/news/politics-government/capitol-alert/article30659625.html#storylink=cpy

California Assembly Speaker Atkins: Water bond deal has stalled

In an interview with Capital Public Radio, Assembly Speaker Atkins (D-San Diego) blamed outside interest groups for blowing up negotiations to replace the $11 billion water bond currently on the November ballot. 

“I’m incredibly disappointed,” Atkins said in the interview. “The stakeholders are really going to have to understand, if they hold out for everything that they want, they could end up with nothing – and I think that’s my biggest concern. We need parochial interests to take a back seat to the needs of the entire state. If one region gets undercut, that’s going to have economic and environmental repercussions in other parts of the state.”

Atkins specifically said water storage supporters and environmental groups that oppose money for dams won’t get everything they want.

“Storage is absolutely a part of our package, but it can’t be at the 2009 level, Atkins said.“Other areas have taken a bigger haircut to help ensure that we find an overall way to get this bond passed,” Atkins said.

Her message to environmental groups: “There are opponents to dams – which is a piece of storage – that are gonna have to realize that some of the storage needs need to be part of the solution. So blowing up a water bond b/c it includes storage will actually sacrifice long-term environmental gains.”

Assembly Minority Leader Connie Conway (R-Tulare) said the sides will continue to talk.“You have to remember it took six years to get the last water bond passed. These things will take some time. We have a good framework, but this can not be rushed,” Conway said.

“Sen. Steinberg already has his sleeves rolled up and is willing to keep working at it,” said a spokesman for Senate President pro Tem Darrell Steinberg (D-Sacramento).

Steinberg and his fellow Senate Democrats failed to pass a $10.5 billion water bond last week. The next day, Gov. Jerry Brown told legislative leaders he wanted a $6 billion measure. Atkins says Assembly Democrats had nearly reached consensus on an $8 billion bond before outside groups interfered.

“The outside interests have basically taken the time to pretty much get people who were on board before to hold out for everything that they could possibly get. Now the concern I have is that they may eventually wind up with nothing,” Atkins said.

The speaker says she still believes a water bond deal can be reached in August, but the interest groups will need to accept less money than they want.