Posted by BOE Member George Runner at 10:00 am on Jun 06, 2011 Comments Off on Debt Sale Could Help Close Budget Gap
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
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
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