SAN FRANCISCO - California will have to balance its budget through deep spending cuts to prevent a looming cash-flow crisis after a request for federal backing was rebuffed by the U.S. Treasury, the state's top fiscal officials told lawmakers Friday.

California Treasurer Bill Lockyer earlier this month asked the U.S. Treasury to use funds from the Troubled Asset Relief Program to back up as much as $15 billion of cash-flow borrowing that California is expected to undertake in the coming fiscal year. Treasury Secretary Timothy Geithner on Thursday told a House committee that TARP doesn't allow the Treasury to back California's short-term borrowing.

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