This graph shows the state's cash flow under different budget scenarios.
State Controller John Chiang has told the governor that the state’s cash flow will remain positive through at least August, even if there is no budget by then. But at that point, he said, he will need to start taking action, possibly including the issuance of IOUs, if lawmakers and the governor have not put a new spending plan in place. If there is a budget impasse and he does nothing, Chiang said, the state would be short of what it needs to pay its bills in October.
You can download his letter by clicking here.
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Tags: budget, cash flow
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[...] State has cash through October, Chiang warns of IOUs – State Controller John Chiang has told the governor that the state’s cash flow will remain positive through at least August, even if there is no budget by then. But at that point, he said, he will need to start taking action, possibly including the issuance of IOUs, if lawmakers and the governor have not put a new spending plan in place. If there is a budget impasse and he does nothing, Chiang said, the state would be short of what it needs to pay its bills in October. [...]