Bond Sale An Early Test for Budget Reforms
Today, state treasurer Bill Lockyer will begin offering $4 billion worth of California general obligation bonds for purchase by California citizens. On Wednesday the bond sale will open for institutional investors. If successful, the bonds will initially back a $500 million payment for infrastructure improvements. The bond sale could give an early indication on how some of the budget reform measures, including one on the May Special Election ballot, are being considered by both investors and California taxpayers.
The bonds are being offered at a time when the Wall Street ratings agencies are taking a sour look at California’s fiscal health. Last week, the Fitch Ratings service downgraded California’s general obligation bond rating from A+ to A, which now ranks the lowest of all 50 states. Standard and Poors Rating Services had knocked down the state’s bond rating to A in February.
Local cities look for help from federal stimulus
A quick grab gag of how different California cities are gearing up for a possible stimulus boost:
Through the federal economic stimulus package, Santa Cruz County will be given nearly $540,000 in grants to hire and retain law enforcement officers.
The Department of Public Health of San Francisco is hoping to receive $67 million for a number of health care upgrades.
Local officials in San Berardino are hoping that stimulus funds will go towards a high-speed rail system with possible stops in their city.
Release the Prisoners
California has the opportunity to do the right thing. A three-judge panel has heard a case concerning the possible release of 52,000 state prisoners. Plaintiffs argue that the system provides inadequate medical and psychiatric care for its inmates. This is cruel and unusual, a violation of the Eighth Amendment, they say.
Taxpayers rightly resent the price tag of prison programs. But if the prisons cannot afford to care for their prisoners, we obviously have far too many.
Governor Schwarzenegger once vowed to reduce the prison population, and he ought to. Now is a good time to seriously reassess the whole system.