Tuesday, March 17, 2009

California Bond Funding: An Easing of Constraints

California state Treasurer Bill Lockyer released another bit of good news today for California enterprises beleaguered by a lack of bond funding, although the announcement would seem to have little direct impact on the state's stem cell agency.

Tom Dresslar, a spokesman for Lockyer, said the treasurer will recommend that the state's Pooled Money Investment Board approve up to $500 million in funding for various bond-funded projects whose funds have been frozen.

The move is contingent on successful completion of the $4 billion state bond sale next week.

CIRM is not likely to be in line for that money. It has been told it is likely to be well down the list of state bond-funded enterprises. While CIRM does not benefit directly from Lockyer's move, anything that helps to create what appears to be a normal financial climate in California will help CIRM's efforts to sell state bonds privately.

Lockyer said the pooled money investment fund has $6 billion in outstanding infrastructure loans that are unreimbursed. The fund is a mechanism that provides loans for projects until bonds are sold, then the bonds are used to repay the fund.

Lockyer's announcement was contained in a widely emailed statement.

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