SACRAMENTO, CA - California's State Controller John Chaing said this week the state could run out of cash by March.
Chaing said lawmakers need to find $3.3 billion through payment delays and borrowing to start closing a projected $25 billion deficit.
However, this wasn't always the case; California has had multiple years of prosperity in the past and years that ran in the red.
In July 2007, California ran in the black without furloughs or borrowing cash.
However, 1999 and 1998 were tough budget years for the state. During those years, manufacturing jobs were disappearing and there was declining tax revenue.
In 1980, the California economy was doing well; people were working and the budget was passed on time.
Today, as lawmakers climb out of a recession, they have about a month to figure out a short term solution to the state's cash shortage.
News10/KXTV