Tuesday, January 31, 2012
The Sweet California Cash Scam - Browndoggle
Joe: see below California Politicians are killing
California and . In this troubled economy, they overspent by $2.6 billion. We are going to run out of cash and the stupid California High Speed Rail is now estimated to cost three times as much – in other words the politicians lied, again. The stupid LA Times still thinks we should go for it. I think Margaret Thatcher said it’s easy to spend other people’s money. By the way the rail situation is now being called a "BROWNDOGGLE" after Jerry Brown. -Bob America
will run out of cash by early March if the state does not take swift action to find $3.3 billion through payment delays and borrowing, according to a letter state Controller John Chiang sent to state lawmakers today. California
borrows money early each fiscal year because the state has regular monthly expenses but receives the bulk of its tax revenues in the spring. The state borrowed $5.4 billion last fall for this purpose. California
High-Speed Rail Authority California
The announcement is surprising since lawmakers previously believed the state had enough cash to last through the fiscal year that ends in June. But said additional cash management solutions are needed because state tax revenues are $2.6 billion less than what Gov. Jerry Brown and state lawmakers assumed in their optimistic budget last year.
The approved a bill today that would enable $865 million of borrowing from existing state accounts, Senate Bill 95. after consultation with the Department of Finance and state Treasurer Bill Lockyer, is also seeking about $2.4 billion in delayed payments to universities, counties and Medi-Cal, as well as additional borrowing from outside investors.
Absent these actions, the state would fall below its prudent $2.5 billion cash cushion on Feb. 29, estimated. On March 8, the state would actually end up $730 million in the red. The state would be below the safe cash cushion for several weeks ending April 13, save for several days at the end of March.
With such actions, believes the state would not have to use IOUs or delay tax refunds, maneuvers that have been relied upon in previous years. But also said that "more cash solutions may be required if our revenues continue to erode or if disbursements significantly exceed estimates."