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Article: California Securitizing a Repayment Promise.(The Regions)
- Article from:
- The Bond Buyer
- Article date:
- November 6, 2009
CopyrightCOPYRIGHT 2009 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Rich Saskal
SAN FRANCISCO - The next storm in an ongoing blizzard of California state paper comes Tuesday, when the California Statewide Communities Development Authority will price a deficit-driven deal in the $1.5 billion range.
The California Proposition 1A Receivables Program revenue bonds are being issued to securitize the state government's promise to repay money it is borrowing from local governments to help balance this year's budget.
Proposition 1A was a 2004 ballot measure, driven by local governments tired of seeing their coffers raided to patch the state's deficit, that was designed to make it more difficult for the state ...