December 15, 2009
California will start the new year with a multi-billion dollar cash deficit. The State started the fiscal year with an $11.9 billion cash deficit in the General Fund, which grew to $24.4 billion by November 30. Those deficits are being covered with a combination of $15.6 billion of internal borrowing from special funds and $8.8 billion in short-term revenue anticipation notes. State Controller John Chiang reports that compared to the amended 2009-2010 Budget Act, the revenues are down by $835 million so far this fiscal year. The budget negotiations in 2010 may well be just as difficult and acrimonious as they were in 2009.