January 20, 2009
In December 2008, the State’s General Fund revenue was $831 million below the Budget Act estimate for the month. Due to the lack of General Fund cash, the State has been meeting its expenditures utilizing a combination of internal and external borrowings. By the end of December, the State had only $3.2 billion remaining in special funds available for internal borrowing. According to California State Controller John Chiang, California may begin, as early as February 1, 2009, issuing registered warrants to individuals and entities in lieu of regular payments.
The Legislature has been unable to reach a compromise on the current fiscal year budget shortfall and soon must start work on the 2009-2010 fiscal year budget.