LOS ANGELES -- As California's cash crisis continued to escalate, state Treasurer Kathleen Brown this week proposed to eliminate a $3 billion budget deficit by taking the unprecedented step of issuing five-year revenue bonds.

Approval of legislation to create a state authority to conduct the deficit borrowing would not negate the state's need to sell a record-size $6.9 billion of revenue anticipation notes on July 20, Brown said.

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