Abstract
The perception among some of California's elected officials in the late 2000s was that state debt was too high and a policy path of continuing at this level was unsustainable. Treasurer Lockyer wished to convey the pressing need to curb the issuance by California of new general obligation debt because of the future strain it would place on the state's General Fund through the greater repayment of interest and principal on accumulated debt. California would increasingly have fewer dollars to spend on current expenditure needs as its commitment to paying off previous debt rose. Given the previously described concerns, California State Treasurer Lockyer asked the California Debt and Investment Advisory Commission to issue six requests for proposals to study various components of this issue. Treasury Department analysts had already amassed support for the verdict that California had taken on excessive debt. Voters in California are the ultimate stakeholders in a policy analysis regarding the desirability of California debt obligations.