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The statement said, "...It is clear the health of the state's treasury has significantly deteriorated."
In a letter to legislative leaders, Controller John Chiang says the health of the state's treasury has deteriorated and projects the state will run out of cash by July 29th -- in 61 days.
"Simply stated, the state will not be able to borrow its way out of this crisis," the statement continued. He also warned that because of the Wall Street credit crisis, the state will not be able to borrow its way out of this crisis.
Chaing said failure to act would do "immeasurable harm to our economy by potentially extending the recession."
He strongly urged lawmakers to take action in the next two weeks, or risk a fiscal catastrophe.
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