From The Los Angeles Times:
The golden rule in state government used to be that if more than 6% of the budget was being consumed by paying back bonds and other debt, there was too much borrowing going on.
It’s been some time since California hit that target.
On Monday, State Treasurer Bill Lockyer released the latest report detailing the state’s debt and outlook for the future. It’s going to be expensive.
Paying down the state’s ever growing credit card bill ate up 7.9% of the state budget in the fiscal year that just ended. California is on track to spend 8.9%, or about $8.6 billion, of the state general fund budget in the current fiscal year.
An easier way to digest the numbers is in terms of how much debt that amounts to for each Californian. The answer? A lot.