Yolo County Bracing For State Deferrals

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(Sacramento, CA)
Tuesday, February 3, 2009

Yolo County Supervisor Mike McGowan admits he may come off sounding a little irate when talking about the state budget crisis. 

“It’s very frustrating to us and yes sometimes it does resonate in sort of an angry tone.” 

That’s because he says it’ll cost the county about $5 million a month to keep state-funded programs going. But the county only has $8 million in reserves. And borrowing the money won’t be cheap. 

“Let’s pretend we just borrowed money for one month at $5 million, the interest on that is over $350,000.” 

Enough, he says, to pay the salaries of half-a-dozen or more county employees. McGowan says the county has already cut 50 positions.

State Controller John Chiang says he had to order nearly $4 billion in delays in payments so that California can keep up with other bills…like debt payments…and not go into default.