SACRAMENTO (AP) — Gov. Jerry Brown has signed a bill that will help the state avoid cash-flow problems this spring by allowing it to borrow from existing government funds.
The governor on Friday announced he had signed SB95, which was passed this week by the Legislature. The cash-management bill ensures that the state has enough money to operate until the bulk of its tax revenue arrives in the spring.
It allows Controller John Chiang to borrow $865 million from various internal accounts. He says tax revenue for the current fiscal year is $2.6 billion lower than projected.
Chiang has said he does not anticipate having to issue IOUs or delay tax refunds.
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