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Controller: State will run out of cash before April

January 30, 2010

State Controller John Chiang warned Friday that California will run out of the cash needed to pay bills by April–unless Gov. Schwarzenegger and legislative leaders agree on nearly $9 billion in budget cuts. [Oakland Tribune]

Those cuts are needed, Chiang insists, to pump $1.3 billion into the state’s checking account. However, even with those cuts, Sacramento won’t reach $2.5 billion in funds, considered a safe level of cash, until later in April when state tax revenue starts flowing in.

Chiang is considering some options to maintain that safety cushion, which could mean the delay of payments by the state, including income tax refunds, this spring.

If the budget gridlock continues, Chiang also warned the state may have to give out more IOUs.


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Here we go again. Don’t they get it? Get in line with the rest of us and DON”T spend more money than you have. DA


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Chevron earned $24 billions in excessive profits in 2008, as per http://www.tyrannyofoil.com. Schwarzenegger should put an excessive profits tax on these profits, instead of protecting the oil corporations from fair taxation, then, there would be sufficient public funds for all the vulnerable, people programs. Big business lost the fight to eliminate domestic violence funding, so now they are coming back with a vengeance. There is no domestic violence funding provision in the proposed budget.


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Earl:

Lets be glad Chevron makes a profit . Part of past profits were made in California. This past year they cut way back in North America (and California) because of all the green pot stirring.


If Arnold were to go after their future profits, they will simply pull out of California for good. You follow that logic …dont you?


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