Posted on 08/19/2010 8:12:01 AM PDT by SmithL
State Controller John Chiang warned Wednesday that California may begin issuing IOUs in as little as two weeks because the state budget is now 50 days late, with no resolution in sight.
In a speech to the Sacramento Press Club, Chiang, a Democrat, criticized the governor and lawmakers for not yet agreeing on a spending plan for the state that solves a $19 billion deficit. California has issued IOUs only twice since the Great Depression: last year and in 1992.
"I must be clear that this year's looming cash crisis is fundamentally different than last year's," Chiang said, adding that in 2009, IOUs resulted from a steep drop in revenue due to the recession. "Importantly, the fiscal crisis we face this year is 100 percent political and the only thing standing in our way is the absence of leadership."
He said the IOUs, officially called registered warrants, would be issued in two to four weeks. Without a budget, the state will run out of cash in October if it does not issue IOUs.
IOUs could be sent to:
-- Vendors who provide goods and services to the state.
-- People and businesses receiving tax refunds.
-- The commission that issues Cal Grants to college students.
-- Counties, for the state's portion of the CalWORKS welfare-to-work program and social service programs for mental health and drug and alcohol abuse.
-- The federal government for the state's portion of Supplemental Security Income and State Supplementary Payment programs for low-income seniors, the blind and the disabled. Last year, the federal government made the full payments but charged the state interest when California repaid that money.
(Excerpt) Read more at sfgate.com ...
It couldn’t happen to a more deserving state.
It couldn’t happen to a more deserving state.
Old MacLiberal has a farm...IO IO U
Nice to see they put the working people first on the list and all the social services last. /s
Now that was funny!
May I blame it on out of control spending Mr. Controller?
I’m glad to have amused you today :)
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