Governor revokes borrowing ability

June 12, 2009 |
Valor

On Thursday, Gov. Arnold Schwarzenegger “followed up on his threat to block a high-interest loan that could be needed to keep California government running if he and state lawmakers fail to balance the budget soon.”
The Governor told the Times’ editorial board on Wednesday that, “What we need to do is just to basically cut off all the funding and just let them have a taste of what it is like when the state comes to a shutdown — grinding halt.”
Earlier this week, Controller John Chiang said “California government faces a ‘meltdown,’ with the treasury set to empty by late July unless the projected $24-billion budget shortfall is resolved quickly.”
Lawmakers must resolve the projected budget shortfall by July 1.
For more budget updates, read: