Central Coast News KION/KCBAState Could Run Out of Cash By March

State Could Run Out of Cash By March

SACRAMENTO, Calif.- State Controller John Chiang said the state will run out of money by March if no action is taken. 

Tuesday, in a Capitol Alert from the Sacramento Bee, lawmakers received a letter from Chiang that said state tax revenues are $2.6 billion less than what Governor Jerry Brown and lawmakers assumed it would be last year.

As we speak, The Assembly budget committee is looking at Senate Bill 95, that would enable $865 million of borrowing from existing state accounts. 

Chiang, is also proposing about $2.4 billion in delayed payments to universities, counties and Medi-Cal, as well as additional borrowing from outside investors.

If action is not taken, Chiang said the state would be $730 million in the red by March 8.

Central Coast Assemblyman Luis Alejo is a part of the budget committee currently reviewing Senate Bill 95.

Chiang said if action is taken, IOUs or delay tax refunds that have been forced in the past, will not happen.