June 26, 2003 10:04 AM
Steve Westly, California's state controller, outlined yesterday what will happen if the budget is not passed by Tuesday:
- California will miss its monthly $200 million payment for K-12 schools, and its $200 million payment for community colleges.
- State employees face drastic pay cuts as soon as late August.
- Vendors will not receive payments for services rendered to the state after July 1.
- Elected officials will not be paid.
The community colleges are the hardest hit, and some may be forced to close.
Tom Nussbaum, chancellor of the California Community Colleges: "We're talking about massive shut downs in access and services that will begin to occur as early as August."
Scott Lay, budget director for the Community Colleges League of California: "With such late notice, it will be difficult for schools to get any type of borrowing. In August, you could see schools not being able to make payroll or having to shut down."
In September the money from the emergency loan will probably run out. If there is no budget, the government will shut down due to lack of funds. This is completely uncharted territory and no one knows what will happen.
Budget crisis hits community colleges the hardest (06.26.2003)
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