Unless the legislature steal close to a billion dollars from Trust Funds, (after already stealing billions from these funds) the State will not have money to pay its bills in about 45 days.
“Absent these actions, the state would fall below its prudent $2.5 billion cash cushion on Feb. 29, Chiang estimated. On March 8, the state would actually end up $730 million in the red. The state would be below the safe cash cushion for several weeks ending April 13, save for several days at the end of March….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. “
They have already borrowed $5.4 billion to keep the State running and $15.6 billion stolen by Brown from Trust Funds to cover HIS deficit.
This is no long poor fiscal management, this is criminal. But, to be fair, the amateur Arnold did the same.
Controller: State to run out of cash in March without action
Sacramento Bee, 1/31/12
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“The Assembly budget committee approved a bill today that would enable $865 million of borrowing from existing state accounts, Senate Bill 95. Chiang, after consultation with the Department of Finance and state Treasurer Bill Lockyer, is also seeking about $2.4 billion in delayed payments to universities, counties and Medi-Cal, as well as additional borrowing from outside investors.
Assemblyman Bob Blumenfield, D-Woodland Hills, downplayed the significance of the new borrowing in a hearing. He said $5.4 billion was small relative to the $10 billion state leaders were prepared to borrow last year.
Some Republicans raised questions about when the borrowing from state accounts from would be paid back and why the state is spending more than expected.”
