If the states are laboratories for democracy, as Justice Louis D. Brandeis once wrote, then Americans in the forty-nine largest states should be grateful for California. Since Jerry Brown first became governor (in 1975, not 2011), the (once-)Golden State has often shown us what policies don’t work.
California will run out of cash by early March if the state does not take swift action to find $3.3 billion through payment delays and borrowing, according to a letter state Controller John Chiang sent to state lawmakers today.
The announcement is surprising since lawmakers previously believed the state had enough cash to last through the fiscal year that ends in June.
But Chiang said additional cash management solutions are needed because state tax revenues are $2.6 billion less than what Gov. Jerry Brown and state lawmakers assumed in their optimistic budget last year. Meanwhile, Chiang said, the state is spending $2.6 billion more than state leaders planned on.
The once-and-current governor is a Democrats as are both house of the state legislature.
(H/t: The Gateway Pundit.)