Budget Adoption Does Not Unfreeze Research Suspension-Yet
Although the revised State budget has now been adopted, the suspension of all bond-funded grants and projects remains in effect. To help the State conserve cash during its protracted budget crisis, the Pooled Money Investment Board last Dec. 17 imposed a freeze on bond-funded projects. The action halted or delayed 5,300 projects with a combined value of $18.1 billion, including $22 million funded through the CALFED Science Program.
According to the State Treasurer’s office, “We should have a much clearer sense of the State’s cash situation in a few weeks. Our return to full speed will not happen overnight. We’re still faced with a tight credit market. And the State has incurred billions of dollars in unreimbursed project costs since we were last able to access the market in June 2008. We’ll have to start clearing that backlog with bond sales before our infrastructure development program can move forward.”