Today on the Assembly floor, Democrats tried to push through some legislation that would have authorized the State Controller John Chiang to, in essence, issue junk bonds for California — where we would borrow on the short-term at huge interest rates. Governor Schwarzenegger has said that he opposes this kind of borrowing, which is costly and does not solve our state’s problems.
Assemblyman Pedro Nava (who aspires to be California’s next Attorney General) and his Democrat colleagues apparently think this kind of borrowing is a good idea — not a surprise, as they will do anything to avoid telling union bosses that real cuts are coming.
Assemblywoman Diane Harkey, we was tapped recently by Assembly Republican Leader Sam Blakeslee as the Republican Lead for Solvency Strategies, took to her microphone in the Assembly Chambers to make the case for why this kind of borrowing is bad, and why Nava’s bill should be rejected.
The bill required a two-thirds vote to pass. Did Harkey prevail on enough of her colleagues to kill the bill? You’ll have to watch this video to find out…