California To Delay Monthly Payments To Schools, Counties Beginning Next Month

The AP (8/24) reports that California Gov. Arnold Schwarzenegger (R) and the state controller and treasurer announced in a letter Monday that they will "delay $2.9 billion a month in payments to school districts and counties" beginning in September "so the state can meet debt and pension obligations." The delay was originally expected to happen in October, and it "came on top of a July deferral of $2.5 billion for schools and $700 million for counties."