Wilson Agrees to Extend Loan Repayment Date

Gov. Pete Wilson has agreed to give the state more time than he had said he would allow to repay a planned, $750-million loan to get the government through the end of the fiscal year.

Controller Gray Davis warned Wilson that the governor’s July 5 deadline, intended to keep the pressure on the Legislature to pass a new budget, was too early. Davis said the state will not have enough cash on hand by then to repay the loan, which will come in the form of notes sold on private financial markets.

A spokeswoman for Wilson said he had agreed to move the repayment date to July 24, as Davis had requested.

“It’s a technical issue,” said Cynthia Katz, assistant finance director. “That’s the date everybody agrees on. We didn’t think July 5 was going to give us enough time.”