SAN FRANCISCO -- California appears no closer to solving its cash and budget crises this morning, following the defeat of a stopgap plan that would have bought time before a liquidity crunch emerged.

With State Controller John Chiang announcing that the state’s imminent cash shortage will require him to begin issuing IOUs next Thursday to the state’s lower-priority creditors, state Assembly members joined ranks behind a bipartisan plan to defer about $5 billion in state spending in July. Chiang said the plan was good enough to avoid putting the state in a position of issuing IOUs next week.

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