Once again, Gov. Arnold Schwarzenegger is thinking big–proposing the largest investment in the state’s infrastructure in its history.
But lost amid the sheer size of the governor’s $222 billion infrastructure package and $68 billion in proposed bonds was the potentially powerful new debt ceiling that could fundamentally change how–and perhaps more importantly–which state programs receive government funding.
As written, the governor’s infrastructure plan would essentially monopolize the state’s entire general obligations bonding capacity for most of the next twenty years, boxing out any group whose pet projects are not contained in the package.
“We want to cover the whole field,” says Mike Genest, Schwarzenegger budget guru and current Director of Finance. “We want to take all the bonding capacity that we think is prudent for the state