State governments have avoided some painful spending cuts by borrowing at some of the lowest interest rates in years, according to USA Today.
The newspaper reported last week that even some of the most cash-strapped states are taking advantage of the increased flow of credit at low interest rates. USA Today reports California borrowed $8.8 billion last week at interest rates of 1.25 percent to 1.5 percent for debt due by June 30. That's about one-third the interest rate it paid a year ago.
Short-term interest rates for governments hit a record low of 0.56 percent recentlyfor debt due in 13 months or less, according toThe Bond Buyer, a newspaper that tracks public finance. Rates on 20-year bonds fell to 3.79 percent, the lowest level since 1967, according to USA Today.