California's sham budget is crumbling due to lack of funds. Smoke and mirrors only last a short time.
(SacBee) — 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.
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.
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. Keep on reading...
3 comments:
That's not news...they're ALWAYS broke.
Simple solution is to draw a line from the ocean east west to the Arizona state line 50 miles north of LA and cede that portion of the state to Mexico and write it off as a business loss and they ought to be good for about ten years.
Ric yeah but what the hell is Mexico gonna do with it. Those corrupt idiots can't control the territory they've already GOT!
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