SACRAMENTO — State Controller John Chiang issued a stern warning Friday about California's cash reserves, telling legislative leaders and Gov. Arnold Schwarzenegger they must act on nearly $9 billion in budget cuts the governor is seeking by March — or the state will run out of cash to pay its bills.
Without making those cuts — which Chiang says will pump $1.3 billion into the state's checking account — California would be broke by April 1, no fooling.
The state wouldn't climb back to what's considered a safe level of cash on hand, $2.5 billion, until later that month, when tax revenues are expected to begin flowing into Sacramento.
"While our current cash condition is marginally better than it was one year ago," Chiang wrote to leaders, "it is still precarious."
Even with the budget cuts, the state's cash reserve would still be far below that cushion in March and April.
To that end, Chiang is calling for an additional $2 billion in cash-flow "solutions." Looking at previous cash crunches, that could mean some payments, like income tax refunds, would be delayed for a few weeks to keep the cushion intact.
"Call it overdraft insurance," said H.D. Palmer, spokesman for the state Finance Department. He stressed that officials are still huddling over specific solutions.
If the budget gridlock lingers all the way to July, then IOUs could come back into play.
And because many budget cuts..
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Start with sending the illegals back to Mexico. It was reported last year that they are responsible for 1/5 of the budget problems.
ReplyDeleteFewer cars on the road
Smaller class size. My kids school is 94% anchor babies.
Quiet emergency rooms
Sounds good to me...
I remember when the President of Mexico spoke up and said he did not want the US to change its border policy. Right then and there I knew that the Prez is the real person running the US, and not the forgettable George W Bush.
ReplyDeleteWhat is an anchor baby ?
ReplyDelete4:19 Google it
ReplyDeleteAnchor baby is a derogatory term in US English for a child born in the United States to immigrants or other non-citizens, regardless of the immigration status of the parents. The term refers to the supposed role of the child, as a U.S. citizen, in facilitating immigration through family reunification under the provisions of the Immigration and Nationality Act of 1965.
ReplyDeleteDon't worry. After the US economy collapses they will be going back in droves. Many US citizens will be on their heels asking for THEIR help. They know how to survive, we don't.
ReplyDeleteOh, what a perfect opportunity to stage a single massive grassroots tax revolt in California, to starve out the current government, and then re-establish a new republic with balanced budgets and honest responsiblity and due process of law!!! Quickly now, someone sew the new flag...
ReplyDeleteNot.
Fortunately, very very fortunately for those DemoRepublican Kleptocrates - the grass eating sheeple will never notice how wide the gates have opened and how close at hand their freedom, terrible terrible freedom, lies just beyond that forbiden threshold. The sheeple of California will continue their glutenous nervous grazing until the Day of Bright Knives and Steely Hooks arrives, when the bankers will harvest their very flesh to settle their paper claims.
Good riddance.
China is watching.
kalifornia will be fine......they came thru last time with the IOU's and will do so again.
ReplyDeleteBesides, they have too much as far as tourism that will always bring the cashola to the coffers.....
once again....................yawn-----------
move along, nothing to see/worry about here folks, move along
8:22 OBAMA BOT is working hard and overtime today! Ya BABY!
ReplyDeleteWe all know it's coming.
ReplyDeleteSending the undocumented folks "back" wouldn't be free! That would cost money too folks! And a damned lot. Think!
ReplyDeleteIF we put all the paranoid, mexican hating people in highly fortified structures with walls and guards (prisons) they would no longer be worried about invaders. A win-win situation!
ReplyDeleteHow about a fortified structure (wall) along the border.
ReplyDeletePress 1 for English. Press 2 to disconnect and learn how to speak English.
3:00 it was a joke turned on the wall/nazi types who call for the militarization of the borders. Thats right, tighten up the police state. Fear the brown man. Don't think.
ReplyDelete