Treasurer Bill Lockyer, a Democrat in charge of state financing, believes the just-vetoed Democratic budget would have prevented the state from borrowing enough money to pay its bills in the 2011-12 fiscal year.
Lockyer's assessment squares with Gov. Jerry Brown's determination that the Democratic majority-vote budget "is not financeable and therefore will not allow us to meet our obligations as they occur."
"Based on our preliminary analysis, the cash-flow borrowing need was $7 billion under the Democratic plan," said Lockyer spokesman Tom Dresslar. "The budget that was passed fell short in terms of providing adequate assurance we were going to have the wherewithal to repay $7 billion by the end of the fiscal year."
Dresslar added, "The Legislature's done a good job of getting us to this point, but there's still work that needs to be done."
Both the governor and the treasurer have now questioned the viability of the Democratic budget. The third leading state fiscal executive, Controller John Chiang, has not yet weighed in.