STATE COULD RUN OUT OF MONEY BY SUNDAY
From CFA:
Having run out of the accounting gimmicks and parlor tricks that have kept the state afloat for the past several months, California will officially run out of money on Sunday if legislators and the governor cannot reach a budget deal.
State Controller John Chiang – the man charged with dealing with the state’s day-to-day cash flow problems – said last week that if a spending plan is not adopted this week, he will be forced to cut off all payments except those constitutionally required. Groups protected by that statute include schools, colleges and bondholders.
“At some point someone must take responsibility for getting a deal done,” said CFA President Lillian Taiz. “This governor has utterly failed our higher education system and moreover our state by not passing a budget.”
Some of the people and programs that won’t get paid in February until a budget is enacted include:
- People who file their state income tax returns and are owed refunds.
- College students who are part of the Cal Grant program. For more info see:
http://calfac.org/allpdf/newsreleas/2009_pressrel/PR_012709_factsheetV7.pdf
- Counties who run public assistance programs.
- State programs that provide services for mental health, alcohol and drug rehab, and the developmentally disabled.
- Trial courts.
- Vendors who sell goods or services to the state.
Having run out of the accounting gimmicks and parlor tricks that have kept the state afloat for the past several months, California will officially run out of money on Sunday if legislators and the governor cannot reach a budget deal.
State Controller John Chiang – the man charged with dealing with the state’s day-to-day cash flow problems – said last week that if a spending plan is not adopted this week, he will be forced to cut off all payments except those constitutionally required. Groups protected by that statute include schools, colleges and bondholders.
“At some point someone must take responsibility for getting a deal done,” said CFA President Lillian Taiz. “This governor has utterly failed our higher education system and moreover our state by not passing a budget.”
Some of the people and programs that won’t get paid in February until a budget is enacted include:
- People who file their state income tax returns and are owed refunds.
- College students who are part of the Cal Grant program. For more info see:
http://calfac.org/allpdf/newsreleas/2009_pressrel/PR_012709_factsheetV7.pdf
- Counties who run public assistance programs.
- State programs that provide services for mental health, alcohol and drug rehab, and the developmentally disabled.
- Trial courts.
- Vendors who sell goods or services to the state.
Comments