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California Budget: Out of Money by July?

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At least we received our state income tax return last week... "The state is facing an unprecedented cash crisis and could run out of money within weeks, says the Legislature's chief budget analyst," according to an LA Times breaking news alert. "Lawmakers and the governor must act to stop the financial hemorrhaging, the analyst says in a new report, or state coffers could run dry by the end of next month."

Is this a get-out-the-vote tactic for Governor Schwarzenegger and his May 19th special election? It certainly seems to dovetail well those sentiments. From the state's May update: "Deterioration of the state’s economic and revenue picture (such as the $8 billion revenue shortfall we forecasted in March) or failure of measures in the May 19 special election would increase the state’s cash flow pressures substantially—potentially increasing the short-term borrowing requirement to well over $20 billion. California is likely to have difficulty borrowing anywhere close to the needed amounts from the short-term bond markets based on the state government’s own credit."