Alex Sink on Florida's challenging economic environment listen10/20/08 Mitch E. Perry
WMNF Drive-Time News Monday | Listen to this entire show:
The state of California is attempting to sell $4 billion worth of bonds this week in the hope it will keep them from asking the federal government for a bailout to meet help keep their programs and services running.
Because tax income is not steady throughout the year, California and other states borrow short-term to pay their bills when revenues are temporarily insufficient.
Now, with states facing the same problem faced by millions of businesses – tightening credit markets – at the same time that revenues are sinking, many budget officials are worried that they may not be able to borrow when they need to.
Florida Chief Financial Officer Alex Sink says the credit environment is challenging, but not as bad as in California.