Keyword: iou

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  • California Digging (Its Own Financial Grave)

    07/01/2009 5:16:12 PM PDT · by WhiteCastle · 38 replies · 3,244+ views
    IBD Editorials ^ | Juky 1, 2009 | Investor's Business Daily
    Regulation: Ignoring the first rule of holes, a bankrupt state passing out IOUs welcomes an EPA waiver allowing it to further kill its economy. Too bad the state can't stop the air pollution imported from a growing China. The U.S. Environmental Protection Agency on Tuesday granted California its long-standing request — denied by the Bush administration — for a waiver to allow it to impose even more stringent air pollution rules than currently required by the federal government.The way is now clear for implementation of a 2002 state law requiring new cars to increase their fuel economy 40% by 2016....
  • California’s IOU Fever Is Likely To Spread To Other States

    07/01/2009 4:25:58 PM PDT · by EBH · 57 replies · 1,421+ views
    24/7 Wall Street.com ^ | June 30, 2009 at 4:55 am | Douglas A. McIntyre
    California has begun to issue IOUs to many state vendors as it grows low on cash. The largest state in America as measured by GDP is up against a $24 billion deficit. According to the FT, “Once the US’s richest state, California now has the dubious distinction of having the worst credit rating in the country.” The state could be joined by Michigan, Florida, and New York as those states face similar problems balancing state budgets. The IOU issue has far-reaching consequences. The first of these is that many critical vendors may refuse to take IOUs. Companies that work for...
  • California’s IOUs may be difficult to cash in

    07/01/2009 1:40:50 PM PDT · by The Pack Knight · 92 replies · 2,990+ views
    Reuters Blogs ^ | 1 July 2009 | Agnes Crane
    With the California controller getting ready to send out the first batch of IOUs on Thursday, banks in the state are still trying to figure out if they want to buy the warrants from depositors. If they decide not to, get ready for crunch time and most likely the emergence of some kind of distressed debt market that will scoop up the IOUs - at a price - from those desperate for cash. Just because the IOUs are sent to a specific person, business or local government doesn’t mean that they can’t be traded in or simply just traded. Whoever...
  • I.O.U.

    07/01/2009 7:59:23 AM PDT · by Alaphiah123 · 5 replies · 357+ views
    Creating Orwellian Worldview ^ | 7/1/09 | alaphiah
    As California goes the way of the Dodo Bird or the California Condor Creating Orwellian Worldview pauses to conserve energy on this day of California’s sliding into the Pacific Ocean of insolvency. The last person out please turn off the lights!
  • California Misses Budget Deadline, Readies "IOUs"

    07/01/2009 3:31:15 AM PDT · by Red in Blue PA · 95 replies · 5,741+ views
    CNBC ^ | 7/1/2009 | Staff
    California's lawmakers failed to agree on a balanced budget by the start of its new fiscal year Wednesday morning, clearing the way to suspend payments owed to the state's vendors and local agencies, who instead will get "IOU" notes promising payment. The notes will mark the first time in 17 years the most populous U.S. state's government will have to resort to the unusual and dramatic measure. Democrats who control the legislature could not convince Republicans late Tuesday night to back their plans to tackle a $24.3 billion budget shortfall or a stopgap effort to ward off the IOUs. The...
  • Deficit forces California to issue IOUs

    06/30/2009 10:52:16 PM PDT · by Schatze · 16 replies · 705+ views
    Financial Times (ft.com) ^ | June 29, 2009 | Matthew Garrahan
    California is preparing to issue IOUs to its creditors this week as it grapples with an unprecedented cash crunch and prepares to begin its new fiscal year deep in the red. Once the US’s richest state, California now has the dubious distinction of having the worst credit rating in the country. It is facing a budget deficit of $24bn (€17bn, £14.5bn) yet Arnold Schwarzenegger, its governor, and the state assembly cannot agree on a budget that would address the shortfall. California’s fiscal year ends on Wednesday but as the state’s cash reserves are empty, IOUs will be issued to a...
  • Deficit forces California to issue IOUs

    06/29/2009 3:28:58 PM PDT · by Lou Budvis · 37 replies · 1,531+ views
    FT.com ^ | June 29, 2009 | Matthew Garrahan
    California is preparing to issue IOUs to its creditors this week as it grapples with an unprecedented cash crunch and prepares to begin its new fiscal year deep in the red. Once the US’s richest state, California now has the dubious distinction of having the worst credit rating in the country. ....
  • California: State Forced to Issue “IOUs” Without Immediate Budget Fix

    06/26/2009 10:41:48 AM PDT · by TigerLikesRooster · 16 replies · 915+ views
    State Forced to Issue “IOUs” Without Immediate Budget Fix PR09:021 6/24/2009 Contact: HALLYE JORDAN 916-445-2636 SACRAMENTO – Today State Controller John Chiang announced that he will be forced to issue registered warrants – also known as IOUs – beginning July 2 if immediate budget and cash solutions are not quickly adopted by the Governor and Legislature. “Next Wednesday we start a fiscal year with a massively unbalanced spending plan and a cash shortfall not seen since the Great Depression,” Chiang said. “The State’s $2.8 billion cash shortage in July grows to $6.5 billion in September, and after that we see...
  • California will issue IOUs starting July 2

    06/24/2009 6:11:41 PM PDT · by bruinbirdman · 14 replies · 2,080+ views
    California could begin issuing IOUs on July 2 unless the governor and lawmakers reach a budget deal, the latest challenge for the financially strapped state. On Wednesday, the state starts “a fiscal year with a massively unbalanced spending plan and cash shortfall not seen since the Great Depression,” State Controller John Chiang said in a news release. The state faces a $2.8 billion shortfall in July, increasing to $6.5 billion in September, with a “double-digit freefall” in the following months, he said. The state has an estimated $24 billion shortfall for the next fiscal year, after voters rejected propositions in...
  • State will have to begin issuing IOUs next week, controller says....

    06/24/2009 12:46:02 PM PDT · by TaraP · 17 replies · 729+ views
    L.A Times ^ | June 24th, 2009
    If the budget crisis is not solved, county agencies, vendors and tax-refund recipients will receive warrants instead of checks, Controller John Chiang warns. Reporting from Sacramento -- The state controller announced this morning that he will have to begin issuing IOUs next week if California lawmakers and Gov. Arnold Schwarzenegger don't settle on a solution to the $24-billion deficit. As lawmakers in both houses began debating proposals for balancing the budget, Controller John Chiang said he would have to issue warrants starting July 2 because of the state's precarious cash position.
  • Legislator raps controller for furniture buy (CA)

    02/05/2009 7:41:33 AM PST · by TornadoAlley3 · 12 replies · 528+ views
    sfgate ^ | 02/05/09 | Wyatt Buchanan
    State Sen. Abel Maldonado, R-Santa Maria (Santa Barbara County) blasted state Controller John Chiang on Wednesday for spending nearly $2 million since July on new furniture for his staff as the state teeters on insolvency. "It's waste because we don't need new furniture today," said Maldonado. "It's fraud to not send the people of California their tax refunds, and it's abuse of power ... to buy furniture when we don't have the resources and we don't have the cash flow."
  • Counting on your California tax refund? Don't hold your breath

    01/28/2009 4:49:48 PM PST · by SmithL · 24 replies · 1,383+ views
    San Jose Mercury News ^ | 1/28/9 | Mike Zapler
    SACRAMENTO — Gov. Arnold Schwarzenegger has been warning for months that California's budget is hurtling toward the proverbial cliff — the point at which the state, which boasts a $100 billion operating fund, runs short of money to pay its bills. That time is about to arrive. While the scenario is less like a suicidal jump than a long debilitating tumble — Californians won't wake up one day to find state government has gone belly up — the fallout could be severe and far-reaching. And the pain will only multiply the longer the legislative budget stalemate lasts. Starting in February,...
  • IOU working group created by state controller - just in case (updated)

    01/14/2009 4:46:37 PM PST · by SmithL · 6 replies · 346+ views
    Sacramento Bee ^ | 1/14/9 | Andrew McIntosh
    Everyone is hoping they'll never actually be needed. But in case state Controller John Chiang really does run out of cash and the state is forced to issue IOUs - it calls them "registered warrants" - to pay state workers and vendors, his office has created a special working group to get ready. Chiang warned of a looming state cash shortage in December, telling state departments to prepare for the worst. He's doing exactly that himself. The controller has joined several financial industry groups representing credit unions and major and independent banks. Together, they're working to identify and work out...
  • Treasury: deficit hits new record in just 3 months

    01/13/2009 11:36:35 AM PST · by TexasNative2000 · 2 replies · 345+ views
    AP via Yahoo.com ^ | 1.13.2009 | Martin Crutsinger
    WASHINGTON – The Treasury Department says the federal government already has run up a record deficit of $485.2 billion in just the first three months of the current budget year. The deficit is on track to surpass $1 trillion for all of fiscal 2009 and some economists believe it could go much higher.
  • Obama Says He Will Seek Overhaul of Retiree Spending

    01/08/2009 12:14:12 AM PST · by reaganaut1 · 51 replies · 2,214+ views
    New York Times ^ | January 7, 2009 | Jeff Zeleny and John Harwood
    WASHINGTON — President-elect Barack Obama said Wednesday that overhauling Social Security and Medicare would be “a central part” of his administration’s efforts to contain federal spending, signaling for the first time that he would wade into the thorny politics of entitlement programs. As the Congressional Budget Office projected a record $1.2 trillion budget deficit for this year even before the costs of the nearly $800 billion economic stimulus package being taken up by the House and the Senate, Mr. Obama stepped up his effort to reassure lawmakers and the financial markets that he plans a vigorous effort to keep the...
  • Bush Health Legacy

    01/09/2009 12:42:02 PM PST · by meandog · 5 replies · 430+ views
    ASK the average American about President Bush's health-care legacy and the most likely response is a snort. After all, didn't he refuse to fund medical aid for kids? Hasn't he spent billions on the Iraq war while shorting human needs at home? It's time to look at facts: Mr. Bush's record on health will stand as a great contribution to the well-being of mankind. Take, for example, the doubling of federal funding for community health centers since Mr. Bush took office. These not-for-profit agencies operate in underserved areas and treat people regardless of their ability to pay. According to The...
  • Dan Walters: California may have a dim future

    01/11/2009 8:32:24 PM PST · by SmithL · 72 replies · 1,915+ views
    Sacramento Bee ^ | 1/11/9 | Dan Walters
    Defense spending in the 1980s, high-tech startups in the 1990s and housing-fueled consumer spending in the 1990s – all were California economic bubbles that burst spectacularly, leaving recession and government deficits in their wake. What, if anything, will come next to pull us out of recession and return California to prosperity? Some think it will be biotechnology, services to baby boomer retirees or solving global warming. Lurking in the background, however, is a nagging worry that there won't be anything, that the state's endemically high costs, political dysfunction and long list of unresolved dilemmas, from transportation to water to education,...
  • Pitchfork and Torch Alert: California May Issue IOU's for Tax Refunds

    01/01/2009 1:30:27 PM PST · by Bill Dupray · 45 replies · 1,625+ views
    The Patriot Room | January 1, 2009 | Bill Dupray
    These greedy SOB's overtax the people, confiscate their tax dollars every week, blow the cash on useless, unproductive government programs, and now they don't have any of the people's money to give back after "borrowing" it - interest free - all year. From MSNBC. If you expect you'll be getting a refund from California when you file your 2008 state income tax return, be prepared: you may instead receive a "registered warrant." Translation: an IOU. Well, I have a few suggestions on how to deal with these reprobates. More . . .
  • Calif. Taxpayers Due Refunds May Get IOUs

    12/31/2008 7:41:30 PM PST · by TigerLikesRooster · 107 replies · 4,337+ views
    MSNBC ^ | 12/31/08 | Patrick Healy
    Calif. Taxpayers Due Refunds May Get IOUs By Patrick Healy NBCBayArea.com updated 8:46 p.m. ET Dec. 31, 2008 If you expect you'll be getting a refund from California when you file your 2008 state income tax return, be prepared: you may instead receive a "registered warrant." Translation: an IOU. California is rapidly running out of money. Blame it on the state budget deficit that continues to bleed billions of dollars from California's reserves. Facing inadequate credit to make up the difference, California's Controller John Chiang warns that by the end of February, the nation's most populous state may not be...
  • Lawmakers first in line for IOUS

    12/30/2008 5:20:23 PM PST · by SmithL · 3 replies · 351+ views
    Sacramento Bee ^ | 12/30/8 | Steve Wiegand
    State Controller John Chiang warned Tuesday that the first group to get hit in the wallet by California's budget debacle is likely to include legislators - and it could happen as early as Feb. 1. The bad news is that next in line to get IOUs instead of cash would be state income taxpayers awaiting refunds and companies that do business with the state. In a letter to state agencies, Chiang said his office was projecting the state would run out of cash around the beginning of March. Without a deficit-closing deal between legislators and Gov. Arnold Schwarzenegger, Chiang said,...
  • The Social Security Trust Fund Fraud, February 1999(IOU's, who repays?, and when?)

    06/23/2007 4:46:06 AM PDT · by Son House · 22 replies · 699+ views
    The Heritage Foundation ^ | February 22, 1999 | Daniel J. Mitchell, Ph.D.
    Social Security benefit payments soon will exceed payroll tax revenues. Beginning in about a dozen years, these annual cash-flow deficits will begin to climb rapidly, soaring to $100 billion in 2015 and $500 billion in 2025. The Social Security Trust Fund is a deception. It contains no genuine assets, only government bonds--IOUs that have no value beyond a promise to impose higher taxes on future workers. "When the government issues a bond to one of its own accounts, it hasn't purchased anything or established a claim against another entity or person. It is simply creating a form of IOU from...
  • (Az) Governor wants to meet with Gonzales over SCAAP

    03/05/2005 3:14:23 PM PST · by SandRat · 39 replies · 784+ views
    PHOENIX - Gov. Janet Napolitano is escalating her fight with the federal government after a top official at the U.S. Department of Justice refused to provide Arizona more money this year to house illegal entrants convicted of state crimes. Tim Nelson, the governor's chief legal counsel, said Friday that Napolitano is insisting on a face-to-face meeting with Attorney General Alberto Gonzales. That comes after someone lower in the agency rebuffed the governor's demand for $118 million to cover the state's costs. But Nelson said if that meeting produces no better results - or Gonzales refuses to talk - the governor...
  • Timothy J. Penny: Social Security trust fund is no more than an IOU

    03/03/2005 7:13:56 AM PST · by Rakkasan1 · 9 replies · 492+ views
    MPLS Star & Sickle ^ | 3-3-05 | Timothy J. Penny
    In a Feb. 22 editorial the Star Tribune wrote favorably of Rep. Martin Sabo's Social Security "fix." The Sabo "fix" essentially promises to pay a higher rate of interest on Social Security's trust fund than is now being paid. However, both Sabo and the Star Tribune fail to acknowledge that the trust fund doesn't consist of real money, but is simply an IOU from one part of the government to another. Raising the interest rate on bonds issued to the trust fund simply raises the amount of general fund revenue that the government will eventually be required to transfer back...