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.Chiang's a Democrat, but he speaks the truth about our screwed up budgeting and he calls it like he sees it. I will probably vote for him if he runs again.
The announcement is surprising since lawmakers previously believed the state had enough cash to last through the fiscal year that ends in June.
But 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.
Wednesday, February 01, 2012
Have We Ever Heard This Story In California Before?
Yes, yes we have. It's an annual thing these days, if not more frequent than that: