California State Controller John Chiang (Chung) says California’s cash balance in January fell well below the latest projections in the governor’s proposed 2012-13 Budget. Controller’s office spokesperson, Jacob Roper says this is not the first month where revenue did not meet projections.
“Actually, the state has been operating in the red since July of 2007. In January, we didn’t see too many sign that that’s going to change soon. Revenues came in at $528 million lower than what the governor had projected that we would receive in the month of January.”
Roper says the controller has already started to make some payment delays to make sure that the cash flow for the state is secure for the next few weeks and the legislature and governor passed a bill to allow the state to borrow more from its internal funds which are special funds for special projects. The Controller says California’s cash flow is expected to go positive again after April 13th as a tremendous amount of income tax revenue comes in in April.