California's rolling in cash. But its new accounting system is so plagued with errors that it may lead to investors doubting the accuracy of key metrics they use in deciding to buy its bonds.

Controller Betty Yee wants a suspension of the Fiscal Information System for California, or FI$Cal, until the bugs are fixed. Otherwise, she says, there's a risk that state agencies may inaccurately represent revenue figures for the state's comprehensive annual financial report, an essential document for gauging California's fiscal standing. That could lead to auditors flagging potential misstatements in the report, which could erode investor confidence and may even lead to a rise in borrowing costs, she said.

“We want to be sure that we are representing the state's overall fiscal health as accurately as possible,” Yee said in an interview. “It just gives investors confidence that the resources will be there.”

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