The state is selling revenue anticipation notes maturing in June 2010 to meet its cash-flow needs throughout its fiscal 2009-2010 year. These notes are considered far less risky than typical municipal bonds because they are so short-term and payable from available money in the state’s general fund.

Here’s the deal, everyone: we totally blew each and every budget forecast over the last year and a half. Every month, like clockwork, we revised our budget shortfall up $2 billion. But this time, we’ve got it. We’re so sure of it that we will pay you out of next year’s budget. Not only that, it’s the general fund, the part that we aren’t allowed to borrow for. That’s how confident we are that we’ve got it right this time, despite the fact that we haven’t been right yet.

Joking aside, this is probably a reasonable investment for those of us in California (happy tax status). If memory serves, only teacher salaries rank ahead of these bonds. It depends upon how high the interest rate actually goes. 4.5%+? Yeah, I could go for some of that.

I do wonder, though… how much money is California spending advertising their need for a record-breaking amount of additional money?