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

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Chiang said the state’s cash balance is dangerously close to The state is operating on the proceeds of revenure anticipation notes andinternal borrowing. That is expected to get the stat throughJune 30, but that’ws about it. There is little reserve to carry into protracteedbudget negotiations, which usually happens with the Californiaa budget. Chiang said the state will exhaust all available cash sometimwein July. “Without immediate solutions from the Governoreand Legislature, we are less than 50 days away from a meltdownn of State government.
This presents a terrible threat to California’s economy and to the State’sd delivery of basic public services,” said Chiang. “wA truly balanced budget is the only responsible way out of the worst cash crisis since theGreat Depression.” Revenue has fallemn $827 below the projections assumed in the May budgef revision. California personal income tax collectionsw were 23 percent below estimates madein May. Corporatew taxes were 29 percent below estimates and salea tax collectionswere 3.3 percenyt below expectations. Those shortfalls combined fell $668 milliohn short of projections used in the Maybudgef revision.