What Happens When California’s Cash Runs Out?

For Valentine’s Day, Californians just want one thing.

“Nothing says ‘I love you’ like a budget deal,” said moderator Joe Mathews at the Los Angeles Central Library, where a full and diverse audience had gathered to talk about California’s cash crunch. Unfortunately, as the panelists made evidently clear, a budget won’t solve everything. State Controller John Chiang, New America Foundation senior fellow Mark Paul and Barclays Capital’s Peter Taylor joined Mathews to tell the crowd how California got into this mess, and how it might get out.

Before the meltdown

California’s …