Sacramento, CA…Controller John Chiang has sent a letter to Legislative budget leaders urging them to take action before the state runs out of cash in March.

The Controller said the liquidity shortfall is projected to last between Feb. 29 and about April 13. Cash flows based on the Governor’s proposed budget show that $3.3 billion worth of cash solutions are needed to address liquidity needs during this period.

If left unaddressed, the State’s General Fund balance at this time will fall below the $2.5 billion minimum safety cushion on February 29. On March 1, cash will be exhausted and will continue to decline until hitting a low of $-730 million on March 8.

Working with the State Treasurer and the Department of Finance, the Controller has crafted a cash management plan that would avoid delays in paying tax refunds or issuing IOUs, as was required in 2009. Additional measures may be needed should the State’s fiscal condition worsen.

Read the Controller’s letter here .