California will be Bankrupt on July 29th

California will be bankrupt in two months! Obama and Geithner have already said they will not bailout California so we are in trouble. Here are the details from California’s Controller

Starting July 29, California won’t have enough cash to pay its bills, state Controller John Chiang told the governor and legislative leaders today.

The state will be in the red by $317.1 million that day, Chiang wrote them in a three-page letter.

“Two days later, on July 31, our cash deficit increases to a negative $1.02 billion,” he added.

He pleaded with them to pass a balanced budget by June 15 to make it easier for the state to borrow money to cover the cash crunch.

Click here to read the letter.

The controller’s office has also prepared a graphic outlining California‘s cash outlook from July 2009 through June 2010, available here.


8 Responses to “California will be Bankrupt on July 29th”

  1. 1 Amanda Smith July 3, 2009 at 1:36 PM

    Although this decision may seem harsh to those of us living in California, I feel it is a good thing that Obama has decided to not bailout California anymore. Now maybe we can start fending for ourselves and make the necessary changes to ensure that we can get out of this hole. Although, I do worry what might happen to California after it has to declare bankruptcy.

  2. 2 Tanisha/ Econ 100 July 9, 2009 at 12:44 PM

    I agree with you Amanda. We don’t need to be bailed out. We need to get ourselves out of this crisis. We aren’t going to do anything but spend that money and need more in a few years. It’s ridiculus. So who cares about the plans that Sacramento has come up with. Obviously they haven’t worked, even in the past, so what’s the difference now? A bigger deficit? I’m scared to see what is going to happen to us, especially since I live here, but enough is enough. Get Arnold out of office.

  3. 3 wongt August 5, 2009 at 10:16 AM

    Although I work for the State of California, I feel overall that it is the right thing to do (even though it worries me that my monthly check comes from the state controller himself – John Chiang). California needs to step up and pull itself out of this mess. The folks at the state capital need to start doing some real work and get things done by making the tough decisions!

  4. 4 Jessica Schimke August 6, 2009 at 2:09 AM

    Bankruptcy is inevitably in California’s future. We have gotten ourselves into this mess, and now it has come down to us declaring bankruptcy to get out of it. Those who are receiving ridiculously large pensions are hopefully not sleeping well, for accepting that much money considering what you contribute is shameful. Those allowing these pensions to continue to be distributed should look at the ground as well. This type of spending should be the first to go!

  5. 5 Patrick Powers August 6, 2009 at 3:55 PM

    July 29th really? Well I guess we are doing better than expected. I think most of this fear is just hype. Like people are thinking that they are going to be broke and homeless because the news and media gives it all this enormous hype. Well yes, the economy isnt doing anything near well, but it will be awhile if California does become in real trouble. Yes maybe a little bankruptcy, but its because of all that spending on invaluable funds we wasted.

  6. 6 Maricar De Los Reyes August 6, 2009 at 5:30 PM

    I agree with you Jessica. I think those that have been getting big pensions, or those at the top of banks that have received bonuses should be thinking about what its doing to the rest of the state. They should somehow spend that money so that it can be circulated back to the rest of the population. California is like a fat, spoiled child. Obama finally set his foot down, and now we’re going to have to learn how to budget our money while helping each other get out of this rut. Yes, we need to spend. But we also need that money to spend. I’m afraid of what will happen to California, and am thinking about returning to my home state if really needed. But I truly hope it doesn’t have to come to that.

  7. 7 Juan Balderas-Econ 101 August 6, 2009 at 9:45 PM

    I think the federal government should help us out because we’re a state that contributes the most to the federal government’s tax revenue. So many agricultural states get subsidized by the government by money that California contributes. It seems only fair to help California out. This is a time when the amount paid in should determine a little money paid out.

  8. 8 Luke Napier December 7, 2009 at 11:08 AM

    This concerns me greatly as a future tax paying citizen of this state. To hear that we are under 1.2 billions dollars just makes me question how did we get this far under and what can I do to fix this? Can we be spending our money into better alternate ways. Does this mean that the state needs to tax even more to our absurd tax as it is. The state of California attracts people not only from all over this fantastic country of ours, but it also gathers people from all over the world. With that in mind we are over populated and nee to regulate borers so those who are not citizens do not take advantage of our government.

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