State Controller Ups Borrowing Estimate
The state controller is raising his estimate of how much California will have to borrow this summer as a stalemate over budget cuts and vehicle license fee increases drags on in the Legislature.
Controller Steve Westly says the state will have to borrow between $4 billion and $11 billion in June to keep its operations running as lawmakers try to erase a budget deficit that could reach $34.6 billion over the next 16 months.
Westly said early in February that the state would probably have to borrow $2 billion to $8 billion before the end of June to deal with cash flow problems brought on by its budget woes. He says the higher projection is the result of a variety of factors, including weaker than expected revenues and the failure of lawmakers to begin trimming the deficit.