CA Controller Seeks More Borrowing to Avoid Shortfall

SACRAMENTO, Calif. (AP) – State Controller John Chiang is urging lawmakers to act on legislation that allows him to borrow money from other state accounts so California doesn’t run out of cash. In a letter to lawmakers Tuesday, Chiang asked them to approve SB95, which authorizes borrowing $865 million from existing accounts. The controller also wants to delay about $2.4 billion in payments to universities, counties and Medi-Cal. California borrows each year to avoid a cash shortfall before personal income tax revenue comes in during April. Chiang says revenue is $2.6 billion lower than projected this fiscal year while spending is higher by about the same amount, but he says there is no danger the state will need to issue IOUs or delay tax refunds. The Senate is expected to consider SB95 Thursday.

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