California Considers Bonds to Boost Economy as Buyers Crave Debt
- Legislative proposal would sell at least $5 billion in debt
- Demand for California bonds outstrips supply amid low rates
The California State Capital building stands in Sacramento.
Photographer: David Paul Morris/BloombergThis article is for subscribers only.
California could issue billions of dollars in debt under a legislative blueprint designed to jump start its economy ravaged by the coronavirus pandemic.
While the main plank of the stimulus plan is a proposal is to give people and businesses an incentive to pay their income taxes years ahead of time, a securitization portion would have the state sell bonds backed by revenue from a 2017 gasoline tax increase, the state’s cap and trade program for emissions of greenhouse gases, and fees the California Public Utilities Commission levies on broadband services.