SACRAMENTO — The budget proposal Gov. Jerry Brown released Monday calls for California not to issue any new general obligation bonds this spring, according to a state official.
Tom Dresslar, spokesman for Treasurer, Bill Lockyer, said the proposal would delay California’s next GO bond sale until the fall. Lockyer estimates the delay would save the California general fund $248.1 million in debt-service costs in fiscal 2012.
Brown’s budget proposal calls for $84.6 billion in general fund spending in fiscal 2012, down from about $92.2 billion in the current year.
Such an issuance moratorium could delay the start of new public works projects, but would not affect any bond-financed projects that are already underway, according to Dresslar. The delay would create the first instance since at least 1988 in which California hasn’t sold GO bonds in the spring, he said.
