Kip:

Thanks for taking the time to talk.  Here's the quote and the cite from Angelides re: state position in the event bond issuance stalls.  If there's anything you need, don't hestitate to call me at 415.782.7822.  Please confirm that you got this, since I'm not sure if I have your email address right.

Best,
Jeff

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"The Administration does not project that the State will need to make additional State loans to support the DWR Power Supply Program even if DWR does not issue its revenue bonds as planned during the 2001-02 fiscal year. DWR projects that its funds on hand at the date of this Official Statement and projected revenues appear to be sufficient to finance the Power Supply Program. The cash needs of the Power Supply Program depend, among other things, on future power purchase costs, the timing and amount of revenues from power sales, the availability of additional interim loans, and the timing of the issuance of revenue bonds by DWR. The Power Supply Act limits loans and advances from the State under the Power Supply Act after November 15, 2001, to amounts required for short-term cash flow purposes of no more than $500 million in the aggregate and requires repayment within 180 days. However, the Governor has the power under the Emergency Services Act to order additional loans or other advances to DWR if needed to further mitigate the emergency.

	The State expects to maintain adequate cash reserves to fund its normal operations during the 2001-02 fiscal year whether or not DWR repays the State loans during the fiscal year. The State plans to issue short-term notes to assure that adequate cash balances are maintained. The State has regularly issued short-term debt in the past to meet its cash flow needs. See 'State Indebtedness-Cash Flow Borrowings.'"

(California Treasurer's Office, Preliminary Official Statement, August 31, 2001, $5,700,000,000 State of California 2001-02 Revenue Anticipation Notes, Appendix A, p. A-4) (emphasis added.)