Posted on 12/05/2008 1:44:01 PM PST by NormsRevenge
SAN FRANCISCO (Reuters) – California is on track to run out of cash in February or March and faces a $15 billion cash shortage by the end of its fiscal year in June unless officials plug an $11.2 billion budget gap, according to the state's budget director.
Additionally, if Gov. Arnold Schwarzenegger and lawmakers fail to close the current fiscal year's budget shortfall soon, California, the most populous U.S. state, may in March delay payments to its vendors or hand them notes promising payment, according to a December 1 letter to top lawmakers from the director of the Department of Finance, Michael Genest.
A copy of the letter was obtained on Friday by Reuters.
"Specifically, it now appears certain that available cash reserves from all sources will fall below the cash cushion target of $2.5 billion in February and that the state will begin delaying payments or paying in registered warrants in March," Genest said in his letter.
"To reduce this threat, the administration is also proposing legislation to increase internal borrowable cash resources," Genest added. "However, even with this cash solution the state will not be able to pay all of its bills in the absence of quick action on the budgetary solutions."
The last time California, the world's eighth biggest economy and the largest issuer of U.S. public debt, issued payment promises to vendors was in the early 1990s.
(Excerpt) Read more at news.yahoo.com ...
Does that mean Caaleifoorniia will have a going out of business sale?
the world’s eighth biggest economy
wasn’t so long ago it was 5th, I think.
a snip further down the page
Schwarzenegger, a Republican, is urging the Democrat-led legislature to back his plan for closing the budget shortfall with a combination of spending cuts and new revenues, including cash from raising the state’s sales tax.
Democrats oppose spending cuts and the legislature’s Republican minority opposes tax increases, resulting in routine stalemates on spending plans.
The state could declare bankruptcy... but could a judge legally void the numerous propositions that cost the state so much money?
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
Have each illegal chip in $1. Problem solved.
All the gold in California
Is in a bank in the middle of Beverly Hills in somebody else’s name
So if you’re dreaming about California
It don’t matter at all where you played before, California’s a brand new game
could a judge legally void the numerous propositions that cost the state so much money?
void? No, I don’t think so.
The best we could probably hope for may be having them suspended.
Aww, Arnold the RINO is running out of money!
Right there, on the western coast of the U S of A, is a prime example of how liberalism fails every time it’s tried.
Apply to Mexico for Financial aid. They have leverage. If Calefornica fails; the population could overrun the boarder going South for a change. Maybe, they could take South LA with them. Can you say surplus?
With all the money floating around in CA? When one is facing a shortfall, one needs to STOP spending and start cutting the fat off.
Couldn’t happen to a nicer set of lunatics, like the Democrats in our legislature and the grade-B actor that serves as our Governor.
My solution? Stop paying for illegals (schools, welfare, housing, medical, prisons) and we’d have a surplus.
Couldn’t have happened to a nicer group of nuts and fruits. California went for Obama; I say “screw ‘em”
When I left CA a couple of decades ago, I believed I was escaping its perversity and socialism.
Nonetheless, it appears I (we) will be asked pay for it as a U.S. taxpayer.
Maybe it’s time the governator lobbies Congress to enforce the laws against illegal immigration by deporting them to Mexico, instead of asking for money to bail them out, and he needs to do it IMMEDIATELY!! Once all of the illegals quit draining the budget on social services, CA will have a LOT of money to play with.
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