Free Republic

Thirteen propositions that have qualified for the Nov. 7 ballot ask voters to authorize billions of dollars in bond issues and new taxes, creating political land mines for the candidates for governor, especially Democrat Phil Angelides. The cumulative weight of the measures could make it more difficult for Gov. Arnold Schwarzenegger to sell his ambitious package of public-works bonds. In the June primary election, voters decisively rejected a seemingly routine library bond issue whose price tag was a tiny fraction of what the Republican governor is promoting. The proposed tax increases on the November ballot complicate life for Angelides, the...

<p>With California set to run out of cash by September, the state is finding it increasingly difficult to borrow its way out of trouble.</p> <p>Lenders are rattled by California's $38.2 billion budget deficit and the prospect that the all-but-certain recall election against Gov. Gray Davis will only prolong the stalemate. Wall Street warned recently that it might downgrade the state's credit rating, which would trigger higher borrowing costs. Meanwhile, some big investment firms that usually purchase state government bonds have stopped buying.</p>