California owes the federal government about $21.1 billion, according to data released Dec. 20 from the U.S. Treasury Department, for loans the state received four years ago and failed to pay back.
In response to a question by The Epoch Times, Gov. Gavin Newsom said finding the money to work out of the debt is a priority for his administration.
“That’s obviously a point of concern, and I’m very mindful and have been for years about this,” he said during a Dec. 16 press conference. “It’s an obligation we have. We will pay it down.”
The governor noted a need to use the budget process, when possible, to pay back some of the loan, rather than relying on the current framework whereby businesses are taxed by the federal government at higher rates to cover the debt. …