SACRAMENTO, Calif. -- California's government faces a dire risk of running out of cash by late summer.

"We need more cash in the state coffers in order just to pay our bills," Assembly speaker Fabian Nunez said.

To keep the state afloat, the administration is preparing to take out a $9 billion line of credit this September. If the budget is late, the state would pay a premium.

"The treasurer estimates that the last time we had to do that back in 2003, it cost the state an extra $100 million," H.D. Palmer, deputy director for External Affairs at the state Department of Finance, said.

KCRA 3 asked the governor on Tuesday if he could comment on the cash crunch the state would be facing unless the budget is passed on time.

"Well, as you know, we are looking through the numbers and the numbers change all the time," Gov. Arnold Schwarzenegger said.

Schwarzenegger is facing the task of filling a budget gap as high as $20 billion. To keep the state solvent, he wants lawmakers to give him extra budget-cutting powers.

"I think whenever there's a crisis like this, we have a good shot of getting it done," Schwarzenegger said.

KCRA 3 also asked the governor if the state would have to start high-cost borrowing if the budget isn't in place.

"We will see what the solution is ... I will show that we will have to make severe cuts, and also I will recommend to go and be creative and look for revenues because we have the lottery out there," Schwarzenegger said. "Everything is on the table, but I am very much against raising taxes."

The governor has said in the past that he wants to privatize lottery operations to raise extra money.

Schwarzenegger spokesman Aaron McLear said the governor is open to tax reform.

"The governor absolutely supports looking at our overall tax structure and is willing to discuss a commission," McLear said. "But it's really important to note that's not a substitute for reforming our broken budget system."

The governor will discuss his latest budget plan next week.