States Are Next To Need Government Assistance

This is a letter sent on October 2, 2008 from Gov. Arnold Schwarzenegger to Treasury Secretary Henry M. Paulson. It outlines the need for an immediate loan from the government for $7 Billion. This warning comes as California is close to running out of cash to fund day-to-day government operations and is unable to access routine short-term loans that it typically relies on to remain solvent. It's customary for California to borrow billions of dollars at the start of the fiscal year to fill its coffers until the usual flood of sales tax receipts comes in after Christmas and income tax receipts arrive in the spring.

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