California Budget Fact Check
There are three main types of debt California owes: budgetary debt, regular indebtedness and unfunded liabilities. Recent reports suggest California has a total indebtedness of over $600 billion.
California budgetary debt topped $35 billion at its height. As of the end of the 2012-13 budget year, California will owe $27.8 billion in budgetary debt.
While the Governor committed to repaying debt if his taxes were approved, his current budget lowers debt payment by $1 billion, putting repayment behind schedule.
Using one-time money to pay back budgetary loans would help the state avoid a fiscal cliff in the future.
Budgetary debt was a unique tool adopted in California to avoid budget cuts in the last decade. The Legislature borrowed money from various state funds, Wall Street, and delayed payments for various obligations. They then used this money to avoid spending cuts. At its height, California budget loans topped $35 billion (end of the 2011-12 budget year). In the budget that will close on June 30, 2013, the state will have paid off $5.9 billion and made other adjustments.
As such, the state will still owe $27.8 billion in budgetary debt at the end of the 2012-13 fiscal year.