I believe they are going to tap into the giant pile of money in the State Pension Funds!
The temptation must be enormous. If it happens, that will be an interesting battle. The public employees are generally quite protective of that money. It's our money they want to fling around.
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.