In a letter to Gov. Schwarzenegger and California lawmakers Friday, state Controller John Chiang warned that “$2.7 billion in cash solutions are necessary” to avoid a cash shortage in this fiscal year, which ends June 30.
“I respectfully urge you to swiftly address the state’s projected budget and cash shortfalls for the remainder of the current fiscal year and the next in order to protect California’s economic recovery, continue the financing of public works projects, and prevent Californians hurt by the recession from experiencing even greater financial hardship,” Chiang said in the letter.
“According to my projections, California will drop below its $2.5 billion prudent minimum cash balance on March 30 by $1.3 billion. On April 1, the state will be in the red by $197 million, and our resources to pay bills are not expected to return to safe levels until April 21,”