Credit crisis could affect bond sales

If Congress rejects the $700 billion bailout plan today, California and local governments might have to postpone voter-approved road, school and other projects for lack of money. Kerry Cavanaugh in the Daily News.

Turmoil in the financial markets has made it difficult and expensive for government agencies to sell bonds that generate the cash needed to pay for large-scale construction projects.

In a letter to Congress this week, Gov. Arnold Schwarzenegger urged action on a bailout plan, warning that the state won't be able to fund highway, school, housing and water projects in the current financial climate.