Look for an announcement as early as today. Controller John Chiang has to determine whether the amount of cash on hand is sufficient to start using real money. On Monday, Chiang said that California had issued almost $1.5 billion in IOUs (or registered warrants) between July 2 and July 31. As of July 31, the state's cash deficit was $16.5 billion. From Dow Jones:
If such an announcement is forthcoming, the controller will then decide whether and when a need exists to carry out any short-term borrowings. Market expectations have been for an announcement soon of at least $10 billion in California short-term debt. The state treasurer's office would decide on the need to sell revenue anticipation notes, which are short-term debt scheduled to mature in the same fiscal year they are issued.
The budget situation could get messier with Senate Democratic leader Darrell Steinberg asking a SF judge to restore Gov. Arnold Schwarzenegger's $489 million in budget vetoes. From the SF Chronicle:
The Republican governor vetoed $489 million before signing legislation July 28 to eliminate a $24 billion deficit from the 2009-10 state budget. He cited his line-item veto power to reduce or eliminate "items of appropriation" from any bill that spends state funds. The difference this time, however, is that the Legislature first appropriated money for the same state programs in the budget that Schwarzenegger signed in February.