Gavin Newsom (D) has signed a bill that requires the state to increase the state’s borrowing limit to at least $18.6 billion, or about $10.3 billion a month.
Newsom signed the bill Monday evening, saying that it’s the first time California has passed a law that explicitly requires the State Legislature to raise its borrowing limit.
Newsom, a Democrat, said he believes the state should have a higher borrowing limit because it “is a sovereign state and it’s up to the voters to set the borrowing limits.”
The measure requires the legislature to pass a budget by July 6 and the governor must sign a budget that includes the necessary spending to pay for the borrowing limit increase.
In order to do that, the measure would require the governor to increase his own borrowing limit by $500 million a month, or $2 billion a year, or nearly twice the current level.
Newsman said the measure does not require the state legislature to increase its borrowing limits.