SACRAMENTO, Calif. (AP) — Gov. Arnold Schwarzenegger, the state’s controller and treasurer are delaying $2.9 billion in payments to school districts and counties a month earlier than expected.

The state leaders on Monday issued a joint letter notifying state lawmakers of their need to make debt and pension payments as the impasse over California’s $19 billion budget shortfall drags on.

That means school districts and counties won’t be paid in September as expected.

Bob Wells, executive director of the Association of California School Administrators, said the state is only shifting its problems onto school districts.

The Legislature in February gave authority to the three officers to delay payments over a three-month period to help manage the state’s cash flow.
Monday’s decision moves up the anticipated delay by one month.


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