The California government received less money than expected in July while spending more, according to data released Tuesday in Controller John Chiang’s monthly cash report.
General fund revenue came in $91 million below estimates in the governor’s May budget proposal. Expenditures were $963 million ahead of estimates.
Lawmakers have yet to adopt a budget for the fiscal year that began July 1. That’s a problem, according to Chiang.
“While July’s numbers do not radically change our cash position, the failure to pass a timely budget remains the biggest threat to California’s finances,” he said. “I urge the governor and Legislature to show leadership by immediately addressing the potential cash crisis.”
Yet without a balanced budget that allows the state to begin its regular cash-flow borrowing, California may still have to take extreme measures to manage cash, including issuing IOUs, by late August or early September, Chiang said.
