LOS ANGELES - California officials, hopeful of a budget accord, are gearing up to sell an estimated $2 billion to $4 billion interim note issue as early as tomorrow, according to an assistant state treasurer.
Once a budget is passed. officials can sell the note issue, also known as a bridge loan, to tide California over until the state's estimated $5 billion revenue anticipation note sale later this fall.
Because California's budget situation yesterday was fluid, the exact sale date for the interim financing was unclear. However, if lawmakers passed a budget by midnight yesterday, the interim note could be sold tomorrow, said Hal Geiogue, assistant state treasurer.
"We've already started working on it," Mr. Geiogue said yesterday. "We've got most of the budget numbers together already."
An interim sale usually takes place four working days after budget passage, but this bridge loan could be sold as early as tomorrow because officials started tallying budget numbers Monday, Mr. Geiogue said.
Officials for the state Department of Finance were less optimistic and predicted an interim borrowing for late next week.
"If a budget and the trailer bills are all in place this week, we could have a sale a week from this Thursday." said Robert Straight, program budget manager for the Department of Finance.
In June, the state selected Morgan Guaranty Trust Co. to provide a standby purchase agreement for a variable-rate portion of the revenue anticipation notes. Lehman Brothers will run the books.