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California Is Running Out Of Money

Sacramento, CA — The Associated Press reports that California officials are worried that the state will run out of cash in two months unless lawmakers act swiftly to close a widening deficit.

State Controller John Chiang believes the treasury will be $2.1 billion in the red come July. This will require the borrowing of money or a delay of payments to agencies. 

Because of decreased revenues coming into the state, Governor Schwarzenegger has indicated that the 2009/10 General Fund budget will need to be around $76 billion. The 2008/09 budget signed last September was over $103 billion.