SAN FRANCISCO - California faces a potentially expensive cash crisis if lawmakers don't approve a budget in a timely manner this year, state finance officials are warning.

The state will need to borrow billions of dollars for short-term cash flow management by September, and that will be much more expensive if a budget is not adopted on or close to the beginning of the 2009 fiscal year on July 1, H.D. Palmer, finance spokesman for Gov. Arnold Schwarzenegger, said yesterday.

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