Bonding capacity could be increased, if needed, by early payoff of existing indebtedness but the premature payment of the state's debt would hurt California's credit rating with Wall Street.
A very clever scheme. Crippled going in and wounded while trying to escape.
Not to be negative but we have some really, really, unsophisticated folks in California who exercise their franchise regularly and if this scheme gets a bare majority the Austrian will be laughing all the way home to Graz.
The fact is, they didn't need to issue those bonds at all. They issued about $11 billion of the $15 billion dollar package that Arnold sold in 2004. Just one short year later, the state ended its fiscal year with a $9 Billion surplus, after cutting very little from state expenditures. The Prop 57/58 sham of all shams. Of course, this new bondage plan isn't looking any better.
In addition to eliminating the remainder of the structural deficit, the Economic Recovery Bonds approved by voters in 2004 are projected to be fully retired by 2010, which will free up a significant amount of General Fund resources that could serve as a revenue stream for payment of debt service obligations associated with the Strategic Growth Plan. (pdf p.62)I also noticed this. Prop76 revisited?
In addition, the budget proposes to restore mid-year correction authority similar to that which existed prior to 983. The mid-year correction authority will allow the Director of Finance to reduce General Fund appropriations, if necessary, to protect the financial interests of the state. Reductions would be limited to 25 percent of an affected appropriation. (pdf p.64)