State confronts money troubles

last updated 8 January 2015

Sacramento

Gov. Arnold Schwarzenegger this week implored voters to approve a $15 billion bond issue on March 2 to rescue California from its budget crisis. Schwarzenegger raised $5.2 million for a blitz of radio and TV ads. Without the bond money, he said he would have to make “Armageddon” spending cuts. State Treasurer Phil Angelides, a Democrat running for governor in 2006, said it would be better to raise taxes on the rich and slash spending. Borrowing billions, he said, would saddle taxpayers with huge interest payments for a decade while the bond is paid off. “It’s just going to run up our credit card bill,” he said.