Tags: US | California | Budget

California to Delay Payments Sooner Than Expected

Monday, 23 Aug 2010 09:15 PM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink

Gov. Arnold Schwarzenegger, the state controller and treasurer decided Monday to delay $2.9 billion a month in payments to school districts and counties sooner than expected so the state can meet debt and pension obligations.

The leaders issued a joint letter notifying state lawmakers of their decision to begin withholding the payments in September instead of October.

The move reflected the limited resources the state has to work with as the impasse over California's $19 billion budget shortfall has dragged on for nearly two months.

Controller John Chiang has warned that the state could again issue IOUs, perhaps as soon as the end of August.

The Legislature gave authority in February to the three officers to delay $2.5 billion a month in payments to schools and $400 million in monthly payments to counties during October, November and December to help manage cash flow.

The step came on top of a July deferral of $2.5 billion for schools and $700 million for counties.

Bob Wells, executive director of the Association of California School Administrators, said the state is only shifting its problems to school districts.

"What started as not a big deal from one day to the next is now delaying $10 billion from schools for many months and school districts still have to meet payroll," Wells said.

The governor's finance spokesman H.D. Palmer said most school districts should be able to endure the delayed payments because the state issued the notification within the same fiscal year.

© Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Charlie Rangel: GOP Believes 'Slavery Isn't Over'

Thursday, 30 Oct 2014 23:09 PM

Rep. Charlie Rangel on Thursday likened Republicans to Confederates from the Civil War era, charging that they "believe  . . .

New York Archdiocese to Reorganize, Merge Parishes

Thursday, 30 Oct 2014 22:51 PM

The Roman Catholic Archdiocese of New York will merge more than 50 parishes because of lower attendance and rising expen . . .

Michelle Bachmann: World Sees US Has No Plan to Fight Terrorism

Thursday, 30 Oct 2014 21:56 PM

The world has no confidence in U.S. leadership because they don't know what our plans to fight terrorism are, Rep. Miche . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved