It's good news in the sense that a state going broke is one way to stop the spending. A better way, of course, is to cut the budget. Alas, Governor Moonbeam doesn't appear to have it in him: 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. The Assembly budget committee approved a bill today that would enable $865 million of borrowing from existing state accounts, Senate...(Read Full Post)