California Plans to Suspend Bond Sales to Save $248.1 Million
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California, the largest issuer of municipal debt in the U.S., plans to save $248.1 million by not selling any general-obligation bonds until later this year, the first time first-half sales won’t occur since at least 1988.
Governor Jerry Brown, a Democrat sworn in last week, proposed a budget yesterday that assumes no general-obligation debt issuance until after the start of the fiscal year in July. The state has sold debt in the first half of every year since at least 1988, Tom Dresslar, a spokesman for Treasurer Bill Lockyer, said yesterday by e-mail.