SACRAMENTO (AP) - Gov. Arnold Schwarzenegger and California's
top finance officials are reacting cautiously to congressional approval of the $700 billion Wall Street bailout package.
They have been worried that the credit market will hurt the state's ability to get short-term loans to cover basic operating expenses, a step California takes each fall until the bulk of its tax revenue arrives in the spring.
Even with the bailout plan passing, Schwarzenegger predicted choppy waters ahead in the financial markets.
He said he would convene a meeting on Wednesday with the four
legislative leaders to discuss the state's financial situation.
While California seeks short-term loans every year, the situation is especially precarious this year. That is because the nation's credit market has seized up under the strains of the housing-related economic meltdown and because lawmakers delayed passing a budget for nearly three months.
(Copyright 2008 by The Associated Press. All Rights Reserved.)