State risks $2 billion in unpaid bills if budget stalemate contines

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State Controller John Chiang says more than $2 billion in state bills will go unpaid if lawmakers do not reach a budget accord by the end of August.

In a chart on his website, Chiang detailed which payments his office would and would not make in the event of a prolonged stalemate.

Schools, health programs, welfare payments and transportation projects would be among the state programs that would not receive scheduled payments.

‘We can avoid or reduce additional financial pressure on our schools, community colleges and private businesses that provide state services if a budget is enacted in a timely manner,’ Chiang wrote.


-- Anthony York in Sacramento