What Happens When California’s Cash Runs Out?

It's all but certain that the state government will run out of money this year. Even if the legislature and governor somehow reach an agreement on budget cuts or tax increases, any solution likely will come too late to prevent a cash crunch. This is uncharted territory for California. What happens if the state goes broke? A panel of California’s top fiscal and economic experts — including State Controller John Chiang, New America Foundation Senior Scholar Mark Paul, and Peter Taylor of Barclays Capital— visited Zócalo to discuss with moderator Joe Mathews how this quasi-bankruptcy will impact state finances, public services, and Californians.