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State Needs to Borrow $9 Billion

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Because of a weak economy and the Legislature´s failure to cut more spending, state Controller Steve Westly says the state will need to borrow at least $9 billion by the end of June to pay its bills.

The amount is more than double Westly´s estimate in March on the minimum amount the state would need to stay afloat. But, while Westly has raised his minimum estimate, he said he´s confident the most the state will need to borrow to cover short-term needs is $11 billion.

The state faces a record deficit that could reach $35 billion in the next 15 months.

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