CALIFORNIA: LAO says state faces looming cash crunch

Sacramento Bee ^ | 5/7/9 | Steve Wiegand

[SmithL]

California could face a staggering shortage of cash unless voters and legislators both address the issue before the start of the new fiscal year July 1, the Legislative Analyst's Office said today.

In a report called "California's Cash Flow Crisis," the nonpartisan and independent analyst said state government could be faced with having to borrow a record $20 billion at the start of the fiscal year in order to pay its day-to-day bills.

The report said failure of budget-balancing measures before voters at the May 19 special election "would increase the state's cash flow pressures substantially - potentially increasing the short-term borrowing requirement to well over $20 billion."

That would be nearly double the largest cash flow headache in state history, which was $11 billion in 2003. It's also $7 billion more than state budget analysts estimated just a month ago that California would need to borrow.

In addition to voter approval of the ballot measures, the report said, the Legislature needs to quickly take steps to close a new budget deficit projected to be at least $8 billion. The LAO recommended that legislators find a way to get the amount that needs to be borrowed below $10 billion, either through program cuts, tax increases or delaying payments to schools and local governments.

[SmithL]

Sooner or later, they're going to run out of other people's money.

[edcoil]

Beware that between now and the vote on the 19th - the world is going to end. LA Sheriff Baca - yes that one that had his cadet school closed to corruption - says 1,000’s of prisoners will be released if we don't pay more taxes to the unions.

[Frantzie]

Obama will just print more money. Illegal immigration and liberalism destroyed CA and will probably destroy America and the West.

[eureka!]

Props. 1A-1E are going down. Peter has told Paul, enough!

[Integrityrocks]

Oh heck no. Obama will give them a “stimulus” loan from the rest of the United state’s tax payers. We’ll all be supporting those lunatics.

[cups]

What’s going to be really awesome is when Cali has to start paying back all these bond measures it passes!!

Good job AAAARHNOLD! You’re an awesome governor!

[txroadkill]

Sooner or later, they're going to run out of other people's money.

Sooner than they think, all the people with money are getting the heck out.

[cups]

Unions have completely wrecked industry and budgets. Awesome job you greedy myopic SOBs!

At one point Unions were important, but not anymore. You’re greed and corruption has forced jobs over seas but you complain about it when it happens. IT’S YOU’RE OWN FAULT!

[Menehune56]

... all the people with money are getting the heck out.

Got that right!

[edcoil]

Have of every graduating class - graduates at the bottom.

These are the ones craving power of those that work and join unions and government unions to protect their jobs and poor performance.

[Cicero]

No kidding. The end of the world is at hand, and they’re all fiddling around with their usual little political maneuvers.

[Uncle Hal]

I just voted no on every ballot measure. I am afraid all the the money the proponents of these measures are spending will allow it to pass. If they do not pass it is going to be a lot of fun.

[businessprofessor]

Do not worry Californians. The Messiah in Chief will come to your rescue. Please ignore those nasty conservatives. The unions, greens, racial hustlers, trial lawyers, community activists, illegal aliens, public employees, and politicians should be trusted.

[Joan Kerrey]

LAO says state faces looming cash crunch

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Why is this a problem? The legislature should do what they’ve always done, raise taxes. When one considers all the services they are getting from the state what fair minded individual would object? /s