Gov. Arnold Schwarzenegger surprised many legislative observers when he announced his intent to shield California’s public university systems from some of the pain of the state fiscal crisis. Can he keep his promise, and what will that mean for the university systems’ current bondholders and their future funding needs?

While Build America Bonds found widespread market acceptance within weeks of the passage of the Federal Stimulus act, the market is still waiting for investors and issuers to embrace the even-more-lucrative Recovery Zone bond program. This panel will examine the root causes in the program’s design that have hampered sales volume, and will look forward to assess whether the bonds will still play a role in the economic recovery of California’s hardest-hit communities.