California’s Cash Crunch: Ay, Caramba!

California is running short on cash fast—$23 billion short. According to chief legislative budget analyst Mac Taylor, the Golden State may not have enough moolah to keep it going through July, and this after across-the-line tax hikes approved in the February budget package.

The Los Angeles Times:

“Without additional legislative measures to address the state’s fiscal difficulties or unprecedented amounts of borrowing from short-term credit markets, the state will not be able to pay many of its bills on time for much of its 2009-2010 fiscal year,” Taylor wrote.

[...] He further warned that if lawmakers put off acting until well into summer, state finance officials could be forced to take measures even more extreme than those taken during the winter budget impasse, when taxpayer refunds, student grants, welfare checks, money owed to vendors and other payments were suspended.

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AP photo / Rich Pedroncelli

Legislative Analyst Mac Taylor talking to reporters about his analysis of Gov. Arnold Schwarzenegger’s proposed 2009-10 state budget in January.