SACRAMENTO, April 15 (UPI) -- California has asked the federal government to help with its cash-flow problem by helping it get billions of dollars in short-term loans, officials say.
The state needs to borrow at least $13 billion to bridge the current fiscal year and the one that begins July 1, the Sacramento Bee reported. Short-term borrowing through Revenue Anticipation Notes is usually routine, but this year California has a low credit rating while the amount it needs is enormous.
"We're going to need cash-flow borrowing the likes of which California has never seen, at a time when market and economic forces are stacked against us," said Tom Dresslar, a spokesman for Treasurer Bill Lockyer. "That's a recipe for calamity."
A spokesman for Rep. Barney Frank, D-Mass., who chairs the House Financial Services Committee, said that Lockyer and the congressman met in March to discuss California's fiscal problems. Steve Adamske said that Frank's staff is working on legislation that should be ready by the end of the month.