State Broke:To Delay $600 Million in Payments

Posted By Stephen Frank on March 11, 2010

The San Jose Mercury is nuts. “Despite another month of good news for California’s slowly recovering tax revenues, finance officials are preparing to delay hundreds of millions of dollars in payments to the state’s trial courts, community colleges and universities.”

Since January the deficit of the State went up by $10 billion–but they call this “good news”.  See story here.

With all this “good news”, payments will be delayed. “As much as $600 million in payments due this month and beyond could be delayed until after income tax receipts spike in April.”

California can not afford this much good news.

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Stephen Frank

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