The State of California is currently sitting on billions of dollars of uncollected debt that could be worth hundreds of millions of dollars on private debt markets. Rather than raise taxes on the hardworking people of California, state leaders should sell off debt to raise the cash we need—just like private businesses do.
Selling aging debt is a common practice in the private sector and has also been used successfully by many local governments. Selling debt makes a lot more sense than selling buildings you have to turn around and lease back.
The sale of these assets could provide much-needed one-time cash. Combined with rising revenues, these dollars could help protect priority programs and eliminate the perceived need to impose higher taxes on struggling Californians.
Today I called upon the Governor and legislative leaders urging them to consider such a sale in their ongoing budget negotiations.
Below is the text of my letter.
June 6, 2011
Dear Governor Brown and Legislative Leaders:
I am writing to suggest monetizing a portion of the billions of dollars in debt owed the State of California as a possible… Read More