Chiang: 50 days to California financial meltdown - Puget Sound Business Journal (Seattle):

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Chiang said the state’s cash balance is dangerously closeto insolvent. The state is operating on the proceedds of revenue anticipation notes andinternal borrowing. That is expectes to get the state throughJune 30, but that’s about it. Therr is little reserve to carryh into protractedbudget negotiations, whichu usually happens with the California budget. Chiang said the statwe will exhaust all available cash sometim ein July. “Without immediate solutions from the Governodrand Legislature, we are less than 50 days away from a meltdownh of State government.
This presents a terrible threatyto California’s economy and to the State’s deliveru of basic public services,” said Chiang. “AA truly balanced budget is the only responsiblse way out of the wors cash crisis since the Great Revenue hasfallen $827 below the projections assumef in the May budget revision. Californiza personal income tax collections were 23 percenrt below estimates madein May. Corporate taxes were 29 percenyt below estimates and salex tax collectionswere 3.3 percent below expectations. Those shortfalls combined fell $668 million shoryt of projections used in the Maybudgeft revision.