July 31, 2014
SACRAMENTO (AP) - State Treasurer Bill Lockyer will warn the Legislature that California will have to stop financing nearly all infrastructure projects within two weeks if lawmakers don't solve the budget crisis.
Lockyer and other finance experts are set to brief the Legislature on Monday on California's $11.2 billion budget shortfall for the current fiscal year. It's expected to grow to $28 billion in the next 18 months.
Lockyer's spokesman, Tom Dresslar, says the fund California usually uses to lend money for infrastructure projects is needed to keep the state afloat.
He says that means California will have to halt about $5 billion in infrastructure loans between now and June.
Gov. Arnold Schwarzenegger declared a fiscal emergency last week
after failing to reach a deal with Democrats and Republicans on how
to fill the budget hole.
(Copyright 2008 by The Associated Press. All Rights Reserved.)