State Surplus
A new slant on Gov. Gray Davis’ proposed $150 refund for all taxpayers: The $150 refund should be withheld and used to buy back debt that the state has incurred in previous years in the form of state bonds. A fiscally prudent individual, when he has a windfall, pays off his debts. Why should it be any different for the state?
The results would be immediate: lower interest costs in real terms and also in lower interest rates for future borrowings because of higher ratings in the bond market. No dialogue is even given to this proposal because it isn’t politically correct in an election year.
DON C. WHITAKER
Irvine
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The state now has in hand all the money we haven’t spent fixing our schools since Prop. 13 passed. What surplus is everyone arguing over?
KELLEY S. WILLIS
Venice
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