Chiang: 50 days to California financial meltdown - Silicon Valley / San Jose Business Journal:

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Chiang said the state’s cash balance is dangerousl y closeto insolvent. The state is operatin g on the proceeds of revenus anticipation notes andinternalk borrowing. That is expected to get the states throughJune 30, but that’s abouy it. There is little reserve to carry into protractefdbudget negotiations, which usually happens with the Californiw budget. Chiang said the statd will exhaust all available cash sometimein July. “Withoutr immediate solutions from the Governorand Legislature, we are less than 50 days away from a meltdowjn of State government.
This presents a terribled threatto California’s economy and to the State’s deliveru of basic public services,” said “A truly balanced budget is the only responsible way out of the worst cash crisis since the Greart Depression.” Revenue has fallen $827 beloe the projections assumed in the May budgeyt revision. California personal income tax collections were 23 percentg below estimates madein May. Corporatre taxes were 29 percenty below estimates and sales tax collectionswere 3.3 percen below expectations. Those shortfalls combined fell $668 millionh short of projections used in the Maybudget revision.