Lack of state budget puts strain on individuals, agencies

By Kevin Yamamura, Sacramento Bee

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.

“I don’t even let my mind go there,” said Caroline Clausen, who borrowed more than $10,000 against her retirement account to keep Toddler Tech Preschool and Daycare open in Bakersfield. “I just try to take care of the day. I try not to give myself an ulcer.”

Read the whole story