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Controller Warns Lawmakers, Governor About Impact of a Late Budget

SACRAMENTO – State Controller John Chiang today sent a letter to the Governor and Legislative leaders, warning them of the impact on state payments with no budget in place by the start of the new fiscal year on July 1.

“During the past three years, the State was brought to its knees by a global recession that wreaked havoc on nearly every sector of our economy and resulted in an unemployment crisis unseen in modern California history.

“The lack of timely and meaningful budget solutions needed to bring government spending in line with its reduced revenues only amplified the State’s fiscal troubles.

“At a time when the economy is showing signs of recovery, we can ill-afford the ‘business as usual’ approach of requiring the State to be driven to the brink of a fiscal meltdown before compromise is achieved.”

More information on which payments may be made without an enacted budget, and which ones the Controller is prohibited from paying without an appropriation may be found on the Controller’s website at www.sco.ca.gov.