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Chiang Issues Statement on Federal Action to Stabilize Markets

State Controller John Chiang today issued the following statement on the adoption of the Emergency Economic Stabilization Act:

“I am cautiously optimistic that the stabilization plan passed by Congress will resuscitate a credit market that has been in a coma for weeks.

“With less than a month until the State runs out of cash, we are exploring all options to secure the funds necessary to meet all financial obligations.

“While I hope the relief package will enable us to borrow through traditional means, I will continue to work with the Governor and the Treasurer to ensure no critical public services and programs are placed at jeopardy.”

Earlier this week, the Controller projected the State would need to borrow $7 billion over the next fiscal year to maintain its cash flow and make all necessary payments