California’s State Department of Finance filed for Chapter 11 protection in May.
The agency, which oversees federal contracting for the state, has been struggling to meet its debts, with the government in the throes of a crippling $1.3 billion budget crisis.
At the time of filing, the agency had $11.3 million in assets and $9.3 in debt.
The $1 billion deficit was caused by a combination of declining federal and state aid to California, as well as its inability to raise enough revenue from property taxes.
As a result, the state is now in danger of defaulting on its debts.
However, the State Department’s creditors will have little recourse, with only $4.9 million in available capital to pay them back.
If the agency fails to raise funds, it would become insolvent.
The state’s debt is expected to reach $972 million by the end of 2019, according to data from the California Department of Financial Institutions.
As such, state Treasurer Scott Wiener has announced a $2 million fund to help with the agency’s payments, which will be used to pay off the debt and pay off outstanding debt in an orderly manner.
Wiener’s announcement comes less than a week after California Governor Jerry Brown announced a similar plan, which was approved by the state legislature on March 6.
While Wiener is promising a much more “diligent” approach to the State’s finances, the plan is unlikely to provide much relief.
The governor’s plan would also likely have a large impact on the state’s bondholders.
Although the state would not have to borrow against its own debt, the interest rate on its debt would rise by 5% to 6% annually.
Winers plan also involves a state-run program known as the California Community Loan Fund.
The program was created to pay the debts of public schools, which have long faced financial difficulties.
As of the end-March end, more than 1,500 community colleges were participating in the program, which is paid for by the California State Teachers’ Retirement System.
The State Teachers Pension System has already agreed to pay about $6 million per year, but the state could face a $4 billion shortfall in its general fund if the state does not find more funds to cover the debts.
If California does not have enough funds to pay down its debt, it could default on its bonds.
The plan could also be detrimental to the state.
If a state does default, it may be unable to pay its creditors, potentially causing a domino effect that would have severe consequences for the region.
The proposed plan is expected in the coming weeks.
California Governor Brown’s plan has been praised by business leaders as a step in the right direction for the State.
But the plan may not help the State financially if it does not raise enough money.
According to a report by the National Association of Realtors, the average California home would have an assessed value of $1,737,974.
That would equate to $3,821,857 in interest.
The median home value in the state of California is $1 to $1 million.
California’s economy is estimated to be worth $2.3 trillion, according the U.S. Census Bureau.