Tuesday, January 31, 2012
California To Run Out Of Cash In One Month, Controller Warns
California will run out of cash by early March if the state does not take swift action to find $3.3 billion through payment delays and borrowing, according to a letter state Controller John Chiang sent to state lawmakers today, reports the Sacramento Bee.
Lawmakers previously believed the state had enough cash to last through the fiscal year that ends in June.
Chiang said additional cash management solutions are needed because state tax revenues are $2.6 billion less than what Gov. Jerry Brown and state lawmakers assumed in their optimistic budget last year. Meanwhile, Chiang said, the state is spending $2.6 billion more than state leaders planned on.
Bottom line: Who needs a Greek financial crisis to worry about, when you have California? They'll patch California together.
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