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Controller Comments on Governor's State of the State Address

SACRAMENTO – Controller John Chiang today issued the following statement in response to the Governor’s State of the State address:

“A year ago, I told the Governor and Legislature that without their courage and collaboration in fixing the budget, there would not be enough cash in the treasury to pay for hard-working Californians’ tax refunds through the spring, and local governments would be hung out to dry. Our cash crisis last year was a shameful chapter in California’s history and a dark reminder of the consequences of a government’s reluctance to make tough decisions quickly.

“We are a year older, and I hope we are a year wiser. Although the deficit is a third of the size of what we faced last year, the one-time solutions and accounting tricks in the last budget pushed more problems into 2010. There are no easy cuts to now bare-bone programs, and federal stimulus funds are drying up.

“I hope we have learned that the best prevention against future payment delays and IOUs is for the Governor and Legislature to quickly provide lasting, responsible budget solutions. I look forward to updating the State’s cash outlook for the year as soon as I have the opportunity to test the cash flow data in the Governor’s budget proposal.”

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