Because it was set too low, the state has borrowed $1.8 billion from the federal government during 2009-2010.

In the case of California, property tax rate is 1.25% and state can borrow money at 4%.

The report says the state is already borrowing beyond its means.

Many political leaders reject the idea that the state is borrowing beyond its means.

The state borrowed $8 million from the Federal government to build a lodge at each park.

No state has ever borrowed so much money to pay current bills, he said.

That's on top of the $1.3 billion the state has borrowed without interest from the fund since 1982.

At the same time, the state would borrow $20 million a year through 20-year bonds.

The state already has borrowed $905 million to balance this year's budget.

In general, the Constitution says the state may not borrow money without a referendum.