California's cash to run out unless market improves to allow RAN sale

By Cristal Cody

Tupelo, Miss., Oct. 1 - California's cash reserves will be exhausted by the end of October unless the market improves enough to allow an upcoming revenue anticipation note sale, state treasurer Bill Lockyer said in a news release Wednesday with the state's 2008 debt affordability report.

The failure to adopt a national economic recovery plan is hindering the state's ability to sell infrastructure bonds and short-term notes, he said.

"The credit market is frozen because financial institutions are afraid to commit capital amid enormous uncertainty," Lockyer said in the news release. "Without action, we will be unable to sell voter-approved bonds for highway construction, schools, housing or water projects."

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