What I thought was signficant was that the concept of pushing repayment past the useful life of capital projects was raised, that paying current expenses out of borrowed funds was labled as wrong, and that loading up local government agencies with debt may create future problems.
If this keeps up, common sense may return to the discussion of government financing. Sorry, I got carried away, the politicians are still looking at the easy money, so common sense hasn't yet returned.
This should be an interesting season for the Bond Rating Agencies. I saw where Moody's downrated Dynergy and Illinova. I expect they will soon get around to DWR and the State of California. It is interesting how nothing is being said any more about "power bonds." Must mean that wall street has told the Gov. that there it is not going to happen.
The ratio I had to meet in private industry was a two year payback.
Completely off the radar screen. Amazing. The "RAWS", too. Certainly some shoe must drop very soon, since the fiscal year ended yesterday, and the California Constitution says things come to a stop until a budget is passed.
The Legislature shall pass the budget bill by midnight on June 15 of each year. Until the budget bill has been enacted, the Legislature shall not send to the Governor for consideration any bill appropriating funds for expenditure during the fiscal year for which the budget bill is to be enacted, except emergency bills recommended by the Governor or appropriations for the salaries and expenses of the Legislature.