06/11/2009 GAAS:303:09 FOR IMMEDIATE RELEASE Print Version |
Governor Schwarzenegger Sends Letter to Controller Eliminating Possibility of RAW
Governor Arnold
Schwarzenegger today sent the following letter to Controller John Chiang
eliminating the possibility of a Revenue Anticipation Warrant (RAW).
Text of the
letter below:
June 11, 2009
The Honorable John Chiang
California State Controller
300 Capitol Mall
Suite 1850
Sacramento, California 95814
Dear Mr. Chiang,
First, let me express my thanks
for the work you and your office have done and continue to do to manage the
state's cash flow. I know how difficult it has been for you, the
Treasurer and my Department of Finance to keep up with our deteriorating
budgetary and cash situation, but you have all done an excellent job under very
difficult circumstances.
I know that you agree with me
that issuing a Revenue Anticipation Warrant (RAW) without enactment of the
solutions we need to bring our budget back into balance would be
irresponsible. Last April, I authorized the establishment of the General
Cash Revolving Fund (GCRF) in anticipation of issuing a RAW as needed. I
have informed legislative leaders that under no circumstances will I agree to
issue a RAW to paper over our current budget shortfall.
Therefore, pursuant to
Government Code Section 16381, I hereby revoke the authorization to transfer
money from any special fund and other state accounts to the General Cash
Revolving Fund. This revocation ends any chance that the state could
issue a RAW and helps to clarify that our only alternative to running out of
cash is to enact the budget solutions needed to restore the 2009-10 budget to
balance.
Sincerely,
Arnold Schwarzenegger
