As though the state’s fiscal condition weren’t dire enough, Controller John Chiang sent a letter on May 29 to the governor and legislative leaders saying that on July 31 the state will be $1 billion short of meeting its payment obligations to schools, local governments and vendors.
“Based on the May Revision revenue and expenditure estimates provided to us late last week by the Department of Finance and taking into account the actual cash receipts and expenditures my office tracks, it is clear the health of the State’s treasury has significantly deteriorated since the adoption of the (budget), a mere three months ago,” Chiang wrote.
And, Chiang says, the situation only gets worse. In April 2010, the state will be $22 billion short of cash to meet its payments.
“That is more than four times the $5.1 billion cash deficit we faced this past spring,” the letter says.
Lawmakers and the governor need to act well before the end of July, Chiang points out.
The controller is preparing to sell Revenue Anticipation Warrants to cover some of the cash flow problem but “without credible budget and cash flow solutions in place, the rating agencies and potential investors who will be evaluating the credit risk of these securities will be highly skeptical about investing in California.”
Failure to act “can compromise the success of this sale or further increase what is expected to be the largest financing costs in the State’s history.”
In short, Chiang says “the state will not be able to borrow its way out of this crisis.”
Chiang “strongly” urges lawmakers and the governor act by June 15.
“Inaction would create an even greater fiscal hardship for Californians, especially those businesses that provide goods to the State and those vulnerable individuals who depend on public health and social services.”
A chart accompanying the letter lays out the situation.
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Who does the Pres require to resign for 22 billion in bailout cash?
There were over 38,000 CA state employees who made at least $100,000 in 2007 – many were paid well into six figures. The Corrections Dept. alone accounted for 18,000 of those employees. You can view the salaries by department at the following sfgate link:
http://b2.caspio.com/dp.asp?AppKey=92721000f5a6h1f9a6j5j3d3f5d5
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You can also see what many northern CA cities and counties pay their public employees at the following link (scroll down to salaries section). Salaries above $100,000 are listed by department:
http://www.sfgate.com/data/
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The above does not take account the pension and health care benefits these employees will collect. Here’s an interesting story from Ken Malloy:
California State Workers – Retire Early – Collect $100,000 to almost $ 500,000 – FOR LIFE !
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A new Website – shows the names of nearly 5,000 retired state workers who are collecting at least $100,000 a year.
http://community.cbs47.tv/blogs/kenmalloy/archive/2009/04/29/3986510.aspx
“There must be more money,
There must be more money!”
The Rocking Horse Boy
It’s time to seriously cut spending.
People deserve good life and loan or just auto loan will make it better. Because people’s freedom depends on money.