California runs out of cash in March:
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.
So revenue projections were too rosy, and the State spent almost 3 billion dollars more than they budgeted for?
Great job, California. Keep electing those smart Democrats!
The "solution" for California is to borrow even more money, and then delay payments (a fancy way of saying "borrow money") to schools and Medi-Cal recipients (those are the folks that need help the most, for my readers in Tuscon).
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.
I'm so confused, because whenever Republicans talk about cutting costs, the Left screams how we don't care about education and healthcare. So why is it okay for those to be cut now, Lefties?
Somehow this will all be blamed on Republicans.