Chiang: 50 days to California financial meltdown - Sacramento Business Journal:

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Chiang said the state’s cash balance is dangerouslyh closeto insolvent. The state is operating on the proceeds of revenue anticipation notesw andinternal borrowing. That is expected to get the statee throughJune 30, but that’s abouf it. There is little reserve to carry into protractexbudget negotiations, which usually happens with the California Chiang said the state will exhaust all available cash sometime in “Without immediate solutions from the Governor and we are less than 50 days away from a meltdowhn of State government. This presents a terriblw threatto California’s economy and to the State’sx delivery of basic public services,” said Chiang.
“A truly balanced budget is the only responsible way out of the worst cash crisisd since theGreat Depression.” Revenue has fallen $827 below the projections assume d in the May budget revision. Californiaw personal income tax collections were 23 percent beloqw estimates madein May. Corporate taxes were 29 percenft below estimates and sales tax collectionsawere 3.3 percent below expectations. Those shortfalles combined fell $668 million short of projections used in the Maybudgeg revision.