Economics 101- in California
As tersely as possible without a long winded explanation this is accounting according to government which has Constitutional Mandates attached:
The controller says California is down to Plan D on its checklist of paying bills. Its cash reserves are piddling; the special funds it borrows from are tapped out, and no one in the private sector is going to lend it any cash at a reasonable interest rate.
That leaves what in state government circles are called “payment deferrals” and what in real life is called “stiffing your creditors.”
In this case the creditors include income taxpayers expecting refunds, college students waiting on state aid, counties that operate public assistance programs, and companies that sell goods and services to state agencies.
Chiang has said he won’t write $3.7 billion worth of checks for those and other state programs if legislators and the governor haven’t reached a deal by next Sunday to close the budget gap.
The controller said he must conserve what little cash the state has to be able to make constitutionally required payments to schools and interest payments to state bondholders.
The controller says California is down to Plan D on its checklist of paying bills. Its cash reserves are piddling; the special funds it borrows from are tapped out, and no one in the private sector is going to lend it any cash at a reasonable interest rate.
That leaves what in state government circles are called “payment deferrals” and what in real life is called “stiffing your creditors.”
In this case the creditors include income taxpayers expecting refunds, college students waiting on state aid, counties that operate public assistance programs, and companies that sell goods and services to state agencies.
Chiang has said he won’t write $3.7 billion worth of checks for those and other state programs if legislators and the governor haven’t reached a deal by next Sunday to close the budget gap.
The controller said he must conserve what little cash the state has to be able to make constitutionally required payments to schools and interest payments to state bondholders.
I will be so glad when it is looked into about how the state political members never ever get a budget out on time or can never come together for the betterment of this state, never ever on any thing, but they get paid almost $200.00each and ever day that they do this...WHY. This is like(the government giving a drug company a contract) a drug company finding a cure for all cancers which will put them out of business, right?
It is these little government doing politics as usual that gets us here in the first place. This state has over looked the billions from lottery that is suppose to go to our schools. The millions that our governor borrowed from our schools and never paid back. Those 7,000 teachers laid off should have saved the state money. Schools close in this state every day, where is the money saved from this...Lets not talk about the loss of jobs by the police agencys or firemen...
AMERICA YOU CHICKENS HAVE COME HOME TO ROOST!!!!!!!!!!!!!
Again I thank you my sister, we must start circling our wagons to protect our children from politics being done as usual...