SACRAMENTO (AP) — California is set to make its final payment on $15 billion in costly borrowing championed a decade ago by then-Gov. Arnold Schwarzenegger.
State Treasurer John Chiang and Director of Finance Michael Cohen are expected to mark the final $928 million payment on Wednesday.READ MORE: Movement Started To Stop Hate Crimes Towards Asians As LA Sees 114% Increase
As one of his first major actions in office, the Republican governor led a bipartisan campaign in 2004 to persuade voters to approve the Economic Recovery Bonds to close the state’s budget deficit.READ MORE: CA Updates Face Mask Guidance, Joins CDC In Suggesting Double-Masking
He pitched the debt refinancing campaign as a way to avoid enormous public service cuts and possible tax increases. Voters approved Proposition 57, but the budget deficits quickly reappeared and the debt service from the bonds added to California’s fiscal woes.
The state treasurer’s office estimates the bonds cost the state $19.1 billion.MORE NEWS: State Prioritizing COVID Vaccine Distribution To Most Vulnerable Communities
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