How all of this will play out with regard to the governor's tax initiative in November is unclear. The kind of cash problems that led to IOUs in 2009 are unlikely to repeat. Thanks to cash in state funds other than the general fund, the controller seems to have substantial room for internal borrowing. If you look at the footnotes in his April report, you will even see some evidence of the borrowing the state has managed to do from UC.
The controller's April report is at:
Perhaps disappointment was inevitable, given the propensity toward optimistic recent budget forecasts:
Showing off her diamond ring later, Cervantez said she was "still shocked."
[But probably not shocked about tax receipts.]
Full story at http://www.fresnobee.com/2012/05/07/2828844/calif-lawmaker-proposes-to-girlfriend.html