From the Sacramento Bee:

California will run out of cash by early March if the state does not take swift action to find $3.3 billion through payment delays and borrowing, according to a letter state Controller John Chiang sent to state lawmakers today.

The announcement is surprising since lawmakers previously believed the state had enough cash to last through the fiscal year that ends in June.

But Chiang said additional cash management solutions are needed because state tax revenues are $2.6 billion less than what Gov. Jerry Brown and state lawmakers assumed in their optimistic budget last year. Meanwhile, Chiang said, the state is spending $2.6 billion more than state leaders planned on.

Chiang has outlined some kick the can down the road maneuvers like delaying payments to universities and Med-Cal and “borrowing from existing accounts” which sounds like paying a credit card bill with another credit card. But even that will not be enough:

With such actions, Chiang believes the state would not have to use IOUs or delay tax refunds, maneuvers that have been relied upon in previous years. But Chiang also said that “more cash solutions may be required if our revenues continue to erode or if disbursements significantly exceed estimates.”

California borrows money early each fiscal year because the state has regular monthly expenses but receives the bulk of its tax revenues in the spring. The state borrowed $5.4 billion last fall for this purpose.

Assemblyman Bob Blumenfield, D-Woodland Hills, downplayed the significance of the new borrowing in a hearing. He said $5.4 billion was small relative to the $10 billion state leaders were prepared to borrow last year.

Some Republicans raised questions about when the borrowing from state accounts from would be paid back and why the state is spending more than expected.

Gee, I wonder.

The point is that California is circling the drain and the government there is doing everything they can to slow the decent but there’s nothing they can do to stop the ultimate collapse. You Californians need to get prepared for the day the locals give IOUS to the millions on welfare there. That will look something like this:

That was rioting over the Rodney King verdict. Imagine when California tells people who are getting benefits that they are going to have to wait a few weeks for their food stamps and other benefits.