California might need a $7 billion loan from the government in the near future, governor Arnold Schwarzenegger said in a letter to the U.S. Treasury on October 2, 2008. The loan would be needed because the financial crisis in the nation has made it difficult for California to obtain loans from other sources. California usually borrows large sums of money at the start of the fiscal year.CNN: California Asks Fed for $7B loan (October 3, 2008)
California Emergency Loan Blogs and Commentaries
- Mercury News: Wall Street Crisis Threatens California's...Budget Plans (October 3, 2008)
References
Fast Facts
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State lacking cash for day to day operations such as salaries for teachersCNN: California Asks Fed for $7B loan (October 3, 2008)
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In 1975, the government borrowed a large sum of money to the state of New YorkLA Times: Schwarzenegger: State May Need $7-billion Loan (October 3, 2008)
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Besides from that event, no state has asked for a loan of such large proportionLA Times: Schwarzenegger: State May Need $7-billion Loan (October 3, 2008)
