RE: Angelides Trying to Turn Up Heat on Loretta ,
 It's hardball time.  I'd be careful going up against UC/CSU, though.

-----Original Message-----
From: MDay [mailto:MDay@GMSSR.com]
Sent: Thursday, September 27, 2001 4:43 PM
To: Dasovich, Jeff
Subject: RE: Angelides Trying to Turn Up Heat on Loretta


He suggested the state could cut all funding for UC and CSU???!!!.  Just
because they like direct access?  The man is insane.

-----Original Message-----
From: Dasovich, Jeff [mailto:Jeff.Dasovich@ENRON.com]
Sent: Thursday, September 27, 2001 2:35 PM
To: mday@gmssr.com
Subject: FW: Angelides Trying to Turn Up Heat on Loretta



> Calif. power bond delay may lead to large deficit 
> NEW YORK, Sept 27 (Reuters) - California state Treasurer Philip
> Angelides said Thursday the state could face a $9.3 billion budget
> deficit in the 2002-2003 fiscal year if $12.5 billion of power bonds
> are not sold before July 2002. 
> The treasurer is certain the bonds will be sold, but he released the
> figures in an attempt to pressure the California Public Utilities
> Commission (PUC) into actions it must take in order to sell the bonds.
> 
> "What I am concerned about is the fact this law has not been
> effectuated eight months after it was passed," Angelides said in a
> telephone news conference in Sacramento, referring to a law passed in
> February setting the biggest municipal bond sale ever in motion. 
> The state depleted its general fund by at least $6.2 billion buying
> electricity to keep power flowing and must sell the bonds in order to
> refill the state's general fund and make future power purchases. 
> "There can be no schedule (for the bond sale) until the PUC completes
> its work," Angelides said. 
> Earlier this week the PUC said the much-delayed meeting is now set for
> Oct. 2. 
> Angelides said PUC Commissioner Jeff Brown, one of five, is on board
> to make the vote, but President Loretta Lynch and other commissioners,
> "are not ready to act." 
> Lynch said earlier this week that she wants more time to work out
> details with Angelides and the Department of Water Resources
> concerning the money and terms of the rate order and rate agreement. 
> How the money from rate increases approved in May will be split up to
> pay for the bonds and to reimburse troubled power utilities and giving
> the Department of Water Resources the authority to sell the bonds,
> still need to be decided by the PUC. 
> Angelides is projecting a $3.1 billion budget deficit for the
> 2002-2003 fiscal year, even if the bonds are sold in time, due to
> reduced revenues as the overall U.S. economy slows. 
> In a worst case scenario, Angelides added that with the bond sale, the
> $3.1 billion gap may grow to $4 billion, while a late sale would push
> the $9.3 billion number to $10.2 billion. 
> The treasurer painted a dire picture of California 's budget if the
> bonds are not sold, likening it to the state's budget problems of the
> early 1990s. 
> Angelides warned a 2 percent sales tax increase might have to be put
> in place, or possibly a $1,574 per student cut in state K-12 education
> spending. 
> Or, the state could drop all spending on the University of California
> and California State University and save $6 billion. 
> Eighteen percent of the state's non-education budget would need to be
> cut if the bonds are not sold, he said. 
> 


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mday@gmssr.com