LOS ANGELES - California Controller Gray Davis said yesterday he will have enough cash in nine days to redeem $475 million of revenue anticipation warrants sold to pay state bills through June 30.
"California has some good economic news to report for a change," said Mr. Davis. "Our latest cash flow is very encouraging and I am confident we can redeem the warrants on July 24."
Because of the improved cash position, the controller said yesterday he canceled a backup agreement with Morgan Guaranty Trust and Bank America Corp., which had agreed to bid on refunding warrants if the state did not have enough cash to redeem the original issue at maturity date.
The revenue anticipation warrants were sold on June 23 to tide the state over until fiscal 1993, which began July 1. A syndicate led by Lehman Brothers won the warrant issue with an average net interest cost of 1.55%.
California continues daily to issue registered warrants, a governmental IOU, to make payroll and other bills, because legislators have not yet agreed on a budget for fiscal 1993.
Through July 13, California has issued $507 million in registered warrants.
"I urge the governor and the legislature to redouble their efforts and pass a budget so California can wean itself from this unhealthy diet of IOUS," Mr. Davis said.