Credit Crunch? Borrow from Those Who Can’t Refuse

That’s the solution the State of California is contemplating: borrow from taxpayers – not that they have a say in the matter:

California, the most populous state in the nation, is running out of cash with a $41.6 billion deficit that Gov. Arnold Schwarzenegger and lawmakers have thus far been unable to resolve despite more than two months of negotiations.

The situation is so dire that the state controller has warned he will have to delay payments to taxpayers, businesses, social service programs and student aid to conserve money in the state’s checking account. Finance officials project the state will run out of cash in late February, but the state controller will have make a decision by Feb. 1.”

Source: SF Chronicle

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