California To Be Out of Money in February

California will be out of cash in February unless the Democrats and Republicans can repair the state budget.

California is on track to run out of cash in February or March and faces a $15 billion cash shortage by the end of its fiscal year in June unless officials plug an $11.2 billion budget gap, according to the state’s budget director.

Additionally, if Gov. Arnold Schwarzenegger and lawmakers fail to close the current fiscal year’s budget shortfall soon, California, the most populous U.S. state, may in March delay payments to its vendors or hand them notes promising payment, according to a Dec. 1 letter to top lawmakers from the director of the Department of Finance, Michael Genest.

The Democrats in the California Legislature refuse to cut spending and the Republicans refuse ANY tax increases. Governor Arnold proposes some spending cuts, a sales tax increase and perhaps a motor vehicle registation fee hike.

Stalemate.

When will there be a deal?

Flap bets when the state runs out of money and government offices are forced to close – but not before.