California delays $4 bln education system payment
SAN FRANCISCO (MarketWatch) -- California delayed a $4 billion payment to its Department of Education system on Friday as the state continues to struggle with a budget shortfall of more than $25 billion. The payment, known as the Principal Apportionment, is the largest annual payment of state funds to California's public education system. The money goes to schools to pay for a wide range of things including salaries. The payment was scheduled for today, which is the last payment for the 2008-09 fiscal year, but will instead be issued on July 30, State Superintendent of Public Instruction Jack O'Connell and State Controller John Chiang said Friday in a statement. California has also issued 91,000 IOUs totalling $354 million as of late Wednesday.
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Wow. The 3.75% is going to start building pretty quickly.
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how are they paying 3.75% interest when they cant even pay back the principal?
didnt the FDIC crack down on banks who were offering 5% CDs to grab capital even though they were insolvent? this is no different
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