Without a state budget, California is relying on a patchwork of bank loans and personal credit lines to help sustain essential services around the state.
It isn’t the government borrowing the money directly, but the thousands of businesses that have supplied state operations, provided medical services and cared for children without reimbursement since July.
Many of state government’s business partners are used to the budget dance each summer: no budget, no payments. But as state leaders push the stalemate into record territory, contractors and care providers wonder how much longer they can last. California has not gone past Sept. 23 without a budget in the modern era. Not only is the state likely to miss that date, but nobody knows when an agreement will come.
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