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Published on Friday, October 03, 2008
By LA Daily News Staff Writer
SACRAMENTO - Gov. Arnold Schwarzenegger and California's top finance officials reacted cautiously Friday to congressional approval of the $700 billion Wall Street bailout package, warning that the nation's tight credit market still presents considerable challenges for the state.
They have been worried that a frozen credit market will prevent the state from getting short-term loans to cover basic operating expenses, a step California takes each fall until the bulk of its tax revenue arrives in the spring. The state's record-long budget impasse this year prevented the state from going to the bond market sooner.
Even with the bailout plan passing, Schwarzenegger predicted a difficult path ahead in the financial markets.
"California's not out of the woods yet," he said during a news conference in San Diego, noting that California soon will begin seeking loans on the open market. "It will be difficult. We will be going through challenges in the future
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