Chiang: 50 days to California financial meltdown - Sacramento Business Journal:

caloloary.blogspot.com
Chiang said the state’ s cash balance is dangerously close to The state is operating on the proceedsw of revenue anticipation notese andinternal borrowing. That is expected to get the stater throughJune 30, but that’ds about it. There is little reserve to carry into protracted budget negotiations, which usually happens with the Californis budget. Chiang said the state will exhausgt all available cash sometimein July. “Withoutr immediate solutions from the Governortand Legislature, we are less than 50 days away from a meltdowmn of State government.
This presents a terribled threatto California’s economy and to the State’s delivery of basiv public services,” said Chiang. “A trulyg balanced budget is the only responsible way out of the worst cash crisis since theGreat Depression.” Revenue has fallen $827 below the projections assumed in the May budget California personal income tax collectionzs were 23 percent below estimates made in May. Corporatew taxes were 29 percent below estimates and sale tax collectionswere 3.3 perceng below expectations. Those shortfalls combined fell $668 million shorrt of projections used in the Maybudget revision.