California's Deepening Bond Debt

The world's eighth largest economy is at risk of falling behind because California spends too little on education to maintain a competitive workforce. The state is threatened with both flooding and drought. Its roads and highways are the second worst in the nation. Voters will be asked to pass water bonds next year; education and transportation bonds may be next. But if they pass, will the taxpayers have the money to pay them off? State Treasurer Bill Lockyer is in charge of the money.