Posted on 12/31/2008 2:32:13 PM PST by NormsRevenge
Sacramento --
State Controller John Chiang, who oversees California's cash flow, warned state agencies Tuesday that unless Gov. Arnold Schwarzenegger and the Legislature agree on a budget, the state will have to begin issuing IOUs to some state employees and contractors as early as Feb. 1.
"Without immediate cash solutions or the ability to borrow billions from the strained financial markets, the state controller's office has no choice but to pursue the deferral of potentially billions of dollars in payments and/or the issuance of ... IOUs," Chiang wrote in a letter to state agencies.
Tuesday, Chiang was still in the hospital where he has been since he experienced chest pains Friday while visiting family in Texas. He was in good spirits while awaiting test results, said his spokeswoman, Hallye Jordan. Chiang is 46.
His letter is the latest chapter in the state's prolonged fiscal crisis, which is estimated to result in a $40 billion deficit by June 2010. State financial officials including Chiang warned earlier this month that the state could run out of cash by the end of February.
(Excerpt) Read more at sfgate.com ...
Happy new year....
They should invent a paper currency out of thin air and print it.... Lots of it.
Hell, it works for the federal government. :p
"I'll buy Park Place and Boardwalk."
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