As several news sources have reported, California Comptroller John Chiang has warned that the California state government may run out of cash in March. As today's Daily Bruin (UCLA student newspaper) reports, the California state government might borrow $200 million from the University of California. Here's a portion of the Daily Bruin article:
A loan from the UC would create a necessary cash cushion in case revenues start to drop dramatically, said Jacob Roper, a press secretary for the state controller’s office.
The UC has a higher credit rating than the state, said Dianne Klein, a spokeswoman for the UC.
That means the UC can borrow money at a lower interest rate – which is why the state prefers to borrow from the University, Klein said.
“While the University would prefer not to loan the money, in reality I don’t think the University will refuse,” Klein said. “This is a seldom occurrence, but clearly in times such as these when we’ve got budgetary problems it’s become more frequent.”
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Nov '10
Re: The California State Government is Scheduled to Run Out of Cash in March; it Might Borrow $200 Million from the Univ. of California
What's to worry? Plenty of filthy rich people whose estates we can simply confiscate to fill public coffers!
(A completely non-exaggerated summing up the level of "thought" that passes for Occupy -- backed up by a legion of rich useful idiots).
Mar '11
Re: The California State Government is Scheduled to Run Out of Cash in March; it Might Borrow $200 Million from the Univ. of California
The UC spokesman should hold a press conference and announce that they would love to be able to lend the money, but that all their assets are currently tied up -- in Greek bonds.
Jul '11
Re: The California State Government is Scheduled to Run Out of Cash in March; it Might Borrow $200 Million from the Univ. of California
There was an asset seizure proposed for all California homeowners above a certain value a few years back. It never went anywhere but neither did those who think it was a great idea.
Sep '10
Re: The California State Government is Scheduled to Run Out of Cash in March; it Might Borrow $200 Million from the Univ. of California
Wow. This is like hitting up your brother in law for a loan because you're credit rating is in the tank. That always ends well.
Sep '10
Re: The California State Government is Scheduled to Run Out of Cash in March; it Might Borrow $200 Million from the Univ. of California
UCLA wins the coveted Unintended Irony Medal with Oak Leaf Cluster.
Aug '10
Re: The California State Government is Scheduled to Run Out of Cash in March; it Might Borrow $200 Million from the Univ. of California
"This is a seldom occurrence"? Doesn't the University of California teach the difference between adverbs and adjectives?
Well, maybe she meant, "It's seldom a occurrence." I could believe that.
Dec '10
Re: The California State Government is Scheduled to Run Out of Cash in March; it Might Borrow $200 Million from the Univ. of California
The CA state government has become lie the soccer team in Alive! At some point, you're hungry enough to eat your own dead.
Mar '11
Re: The California State Government is Scheduled to Run Out of Cash in March; it Might Borrow $200 Million from the Univ. of California
Bah, all you critics simply lack vision. Do you not understand, California is leading the nation. After all nothing such as mere lack of funds can be allowed to halt our new bullet train:
Aug '10
Re: The California State Government is Scheduled to Run Out of Cash in March; it Might Borrow $200 Million from the Univ. of California
the gov here in missouri tried that the other day and got shut down faster than a church bake sale in nyc. wait till the rda shutdown roars back up through the system
Apr '11
Re: The California State Government is Scheduled to Run Out of Cash in March; it Might Borrow $200 Million from the Univ. of California
I'm starting to think this country would be better off with a few less states.
Aug '10
Re: The California State Government is Scheduled to Run Out of Cash in March; it Might Borrow $200 Million from the Univ. of California
Right on! Brown found a new revenue stream. Tuition hikes! Maybe he can link that to increased Federal Funding for Student Loans.
Oct '11
Re: The California State Government is Scheduled to Run Out of Cash in March; it Might Borrow $200 Million from the Univ. of California
But the UC isn't dead yet! A better analogy is eating one's own children.
The root of the problems with CA is that it should have been a few more states, say Northern, Southern, and Valley.
Break NY into two and we're well on our way to 57! Can we elect John Heinz-Kerry then?
Aug '10
Re: The California State Government is Scheduled to Run Out of Cash in March; it Might Borrow $200 Million from the Univ. of California
And when the ratings agencies realize the University is tossing hundreds of millions of dollars down a black hole, what do they think will happen to its rating (and its resultant cost of borrowing)?
Nov '10
Re: The California State Government is Scheduled to Run Out of Cash in March; it Might Borrow $200 Million from the Univ. of California
I will tell you what a second Obama Administration will do. Healthcare first term, merging the defined contribution system (401-Ks, 403-bs, etc) into the social security system. In one full sweep, they resolve social security and public pensions, but in a way that will make the uninformed think it the greatest deal on earth. Guaranteed security! For all of us with IRAs, we will be given a choice to cash them in, or to keep the tax deferment, invest a certain percentage in some type of government bond. You may say no way, but there have been multiple congressional hearings on it, and more importantly influential academicians think it is a great idea. This will solve the CA debt problem one way or anothe.
Mar '11
Re: The California State Government is Scheduled to Run Out of Cash in March; it Might Borrow $200 Million from the Univ. of California
Comforting to know our leadership will be taking the best ideas the Third World has to offer. If I recall correctly that is almost exactly what occurred in Argentina. Your speculation has far too much plausibility for my comfort.
May '10
Re: The California State Government is Scheduled to Run Out of Cash in March; it Might Borrow $200 Million from the Univ. of California
I wonder if this will affect future alumni donations to the university. When alumni donated to the school, they probably didn't think they were donating to a bank or slush fund.
Jul '10
Re: The California State Government is Scheduled to Run Out of Cash in March; it Might Borrow $200 Million from the Univ. of California
I must say, if I were predisposed to consider an eat the rich strategy, I would start with the tenured Bolshevik's and identity prostitutes. Hey, I just might be able to sell Newt on that!
Jul '10
Re: The California State Government is Scheduled to Run Out of Cash in March; it Might Borrow $200 Million from the Univ. of California
This stuff makes the local news here in the DC area every time a new Democrat Congress is elected. Those Congressionally "protected" retirement accounts have always been considered a potential slush fund by the left, to be confiscated in exchange for federal assurances of future considerations.
But I am assured that such things are nothing to get upset about.