California Will Borrow Up to $1 Billion to Skirt Cash Crisis

California will seek a loan from Wall Street of as much as $1 billion to pay bills as the most populous U.S. state’s tax collections trail budgeted amounts, according to the treasurer’s office.

Treasurer Bill Lockyer is drawing up plans for a so-called revenue-anticipation note sale to deal with cash-flow needs, said Tom Dresslar, a spokesman. It would mark the third such sale this fiscal year. While Lockyer still has to settle on the exact amount and timing, the offering probably will be less than $1 billion, Dresslar said by telephone.