Good News – Bad News on the State’s Cash Situation and the Prospect for IOUs
The state controller has issued his cash report for the first two months of the fiscal year. He reports $6.7 billion in “unused unborrowed reserves,” essentially cash he can use to pay bills. That sum continues to stave off the need for the kind of registered warrants (IOUs) that have been issued in the past. That’s the good news. The bad news is a) there still is no state budget, b) the cash the controller reports is in part available because, absent a state budget, some bills are not being paid (which saves cash), c) the sum is less than…