California CFOs Weigh In on Priority Payments

As California’s chief financial officers, we are writing to inform you that Orange County Treasurer-Tax Collector Chriss Street [in the Sept. 16 article “Analysts, Bankers and Buyers Remain Upbeat on Muni Credit”] appears to have a ­fundamental misunderstanding about the structure of priority payments under California law. 

Failing to pay vendors in the absence of a state budget, and thus, lack of a budget appropriation, does not elevate those payments to priority status.

California will continue to manage its cash during these difficult times in a way that always protects debt service and ­education.

California Controller John Chiang

Treasurer Bill Lockyer

Finance Dept. director Ana ­Matosantos