Keyword: iou

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  • Promises, promises: Obama’s IOUs start coming due

    04/18/2013 1:43:27 AM PDT · by Olog-hai · 48 replies
    Associated Press ^ | Apr 18, 2013 3:10 AM EDT | Calvin Woodward
    Presidential campaigns are long in the making, quick to be forgotten. But one part of them lives on for years: the victor’s promises. President Barack Obama paved his path to re-election with fewer promises than in 2008. The ones he did lay down, though, are meaty, legacy-shaping for him and consequential to ordinary lives today and for generations to come, for better or worse. They also are extraordinarily difficult to achieve in a time of gridlock grief and budgets that are tight when they are not paralyzed. … Whatever a candidate’s promises, legacies are made by how a president manages...
  • Latest serious idea for fiscal-crisis solution: IOUs

    01/10/2013 10:56:18 AM PST · by SeekAndFind · 5 replies
    Hotair ^ | 01/10/2013 | Ed Morrissey
    Well, thank goodness we're taking the issue seriously. It's difficult to conceive of a sillier proposal than the trillion-dollar platinum coin, but it's not as if some people aren't working hard at it. National Journal reports that a new suggestion involves government scrip --- IOUs, in other words: The $1 trillion platinum coin seems too wacky; the 14th amendment too risky. But could IOU's be the solution to an impasse on raising the nation's borrowing limit?Yes, and President Obama should publicly adopt the idea, Edward Kleinbard, a University of Southern California law professor and former chief of staff to CongressÂ’s...
  • Jerry Brown seeks ways around GOP on tax vote

    03/23/2011 7:56:48 AM PDT · by SmithL · 13 replies
    San Francisco Chronicle ^ | 3/23/11 | Wyatt Buchanan, Chronicle Sacramento Bureau
    Gov. Jerry Brown is considering bypassing Republicans in the Legislature by putting a measure on the November ballot that would increase taxes to close the state's budget deficit, sources involved in the talks said Tuesday. Brown floated the idea of issuing IOUs starting in July, when the next fiscal year begins, until the November election. The IOU plan would cover expenses until the election could be held, according to insiders. The governor has expressed frustration in recent days over negotiations with Republicans on closing California's $26.6 billion deficit and even told a dinner gathering of labor leaders Monday night that...
  • CALIFORNIA: Lockyer warns IOUs likely if budget talks fail

    01/23/2011 2:20:07 PM PST · by SmithL · 32 replies · 1+ views
    SacBee: Capitol Alert ^ | 1/22/11 | David Siders
    The state could begin issuing IOUs in April or May if Gov. Jerry Brown and the Legislature fail in their budget negotiations, state Treasurer Bill Lockyer said this afternoon. IOUs could be required if the state is "unable to meet the self-imposed deadlines by the governor and the Legislature to adopt a budget in a timely way," . . .
  • California Budget Impasse Enters Fourth Month; IOU Option Looms

    10/02/2010 2:09:58 PM PDT · by SeekAndFind · 7 replies
    Business Week ^ | 10/02/2010 | Michael Marois
    California’s longest budget impasse entered its fourth month today as Governor Arnold Schwarzenegger and top lawmakers wrestled over pensions and corporate taxes to close a $19.1 billion deficit. Reining in state retirement costs and providing tax breaks for businesses remain sticking points, aides said as legislative leaders emerged from a four-hour meeting at the Republican governor’s Sacramento office last night. “We still have some issues that need to be resolved that are significant,” said Senate President Pro Tem Darrell Steinberg, a Democrat from Los Angeles. He said another meeting is scheduled today. California, the largest issuer of municipal bonds in...
  • Blame politics if IOUs return, controller says

    08/19/2010 8:12:01 AM PDT · by SmithL · 9 replies
    San Francisco Chronicle ^ | 8/19/10 | Wyatt Buchanan, Chronicle Sacramento Bureau
    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...
  • We Want Our IOUs ( CA )

    08/12/2010 9:16:55 AM PDT · by george76 · 4 replies
    nbc ^ | 8-12-2010 | Joe Mathews
    State Controller John Chiang said Tuesday that without a state budget, California's government would be unable to pay its bills in late August (or maybe early September). That means issuing IOUs to some people. Possible dates for IOUs could be either Aug. 27 or Aug. 31, when big payments to schools are due, according to this schedule on the controller's website. This announcement, in the upside down world of California's badly broken budget politics
  • Social Security starts cashing in US debt

    03/15/2010 12:01:07 PM PDT · by RobinMasters · 19 replies · 877+ views
    Hot Air ^ | MARCH 15, 2010 | ED MORRISSEY
    We’ve noticed the cash shortfalls at Social Security for more than a year, and now they appear to be permanent. For the first time, the Social Security Administration will start cashing in its IOUs from the Treasury in order to meet its benefits obligations. Unfortunately, the Treasury doesn’t have the cash, either: The retirement nest egg of an entire generation is stashed away in this small town along the Ohio River: $2.5 trillion in IOUs from the federal government, payable to the Social Security Administration. It’s time to start cashing them in. … Too bad the federal government already spent...
  • Obama May Have to Borrow From Overseas to Pay Social Security IOUs

    03/15/2010 6:52:20 AM PDT · by TigerLikesRooster · 18 replies · 833+ views
    Money News ^ | 03/15/10
    Obama May Have to Borrow From Overseas to Pay Social Security IOUs Monday, March 15, 2010 07:31 AM The retirement nest egg of an entire generation is stashed away in Parkersburg, W.Va., a small town along the Ohio River: $2.5 trillion in IOUs from the federal government, payable to the Social Security Administration. It's time to start cashing them in. For more than two decades, Social Security collected more money in payroll taxes than it paid out in benefits — billions more each year. Not anymore. This year, for the first time since the 1980s, when Congress last overhauled Social...
  • State, University employees could end up with IOUs in paycheck in 2010

    12/11/2009 5:38:36 PM PST · by Kartographer · 10 replies · 949+ views
    Douglas Dispatch ^ | 12/9/09 | Howard Fischer
    State and university employees could wind up with IOUs in their pay envelopes instead of checks in February if the planned sale of state buildings hits a snag, state Treasurer Dean Martin warned Monday. And that could leave worker with a piece of paper that won’t help them buy food for their families, pay the mortgage or heat their homes.
  • Governor: No state parks to close (reduced hrs. for campgrounds/facilities, less bathroom cleaning)

    09/25/2009 4:54:22 PM PDT · by NormsRevenge · 16 replies · 563+ views
    SFGate.com ^ | 9/25/09 | Peter Fimrite
    (09-25) 16:05 PDT SACRAMENTO -- Under fire from park supporters and the state's own attorneys, Gov. Arnold Schwarzenegger said today that no state parks will be completely closed to help solve the state's budget woes. Instead, the governor's new plan, which some say is little more than a shell game to save face, would slash $14.2 million from the park budget this year by closing campgrounds and facilities on weekdays, reducing seasonal and administrative staff and cutting back on things like bathroom cleaning. The idea is to allow all 279 state parks to remain open this fiscal year. More options...
  • Recession hits nest eggs; US promotes ways to save

    09/05/2009 1:57:51 PM PDT · by RatsDawg · 19 replies · 958+ views
    Associated Press ^ | Sep 5, 2009 | CHARLES BABINGTON
    The recession has eaten into people's nest eggs so the government is promoting ways to make it easier to save for retirement. One initiative that was outlined in his weekly radio and Internet address Saturday will allow people to have their federal tax refunds sent as savings bonds. Others are meant to require workers to take action to stay out of an employer-run savings program rather than having to take action to join it. The new federal steps, which do not require congressional action, include: _Making it easier for small companies to set up 401(k) retirement savings plans in which...
  • Tax hikes coming for Californians anyway

    08/27/2009 12:46:45 PM PDT · by Lou Budvis · 29 replies · 1,335+ views
    Hot Air ^ | August 27, 2009 | Ed Morrissey
    Californians must have thought they’d sent a loud and clear message to Sacramento in May when they rejected a series of referendums that would have approved tax hikes to solve their budget crisis. The only ballot initiative approved cut off legislators’ pay when they failed to produce a budget, in what should have been a sign that the Golden State electorate had had enough. The political class in the state capital apparently has their fingers stuck firmly in their ears:
  • JP Morgan Bails Out California

    08/24/2009 8:46:52 PM PDT · by Sammy67 · 26 replies · 1,496+ views
    BusinessInsider ^ | 8/19/09 | John Carney
    Remember when the US government had to bail out investment banks? Now a bank is bailing out the state of California. California had been covering its budget shortfalls by issuing IOUs to pay for services, making it the first state to issue its own fiat currency since the Civil War. The program ran into trouble when banks announced they wouldn't keep cashing the IOUs. Eventually California reached a budget deal and kicked the can down the road, but there's still the issue of the outstanding IOUs. Yesterday JP Morgan agreed to lend California $1.5 billion to
  • California Assembly Balks at Early Release of Inmates

    08/22/2009 5:45:08 AM PDT · by kellynla · 7 replies · 710+ views
    cnn.com ^ | August 21, 2009 | Don Thompson
    California Assembly Speaker Karen Bass plans to strip the most controversial provisions from a Senate-approved plan that would have trimmed the state's prison population by 27,000 inmates. The Assembly version would keep about 10,000 more inmates behind bars and leave the state with a new, nearly $200 million budget hole, Bass said early Friday. Bass said the new plan -- to be considered Monday -- would do away with proposals by Gov. Arnold Schwarzenegger to allow home detention with electronic monitoring for inmates with less than 12 months to serve, who are over age 60 or who are medically incapacitated....
  • University of California chief warns unions not to fight furloughs

    08/21/2009 12:44:00 PM PDT · by SmithL · 4 replies · 620+ views
    Sacramento Bee ^ | 8/21/9 | Laurel Rosenhall
    When University of California President Mark Yudof announced a massive furlough plan last month, the idea was that almost all UC employees would have their salaries reduced this year by taking some days off without pay. But a third of UC's 180,000 employees haven't faced the furloughs yet. They're represented by about a dozen labor unions that are fighting Yudof's plan. Speaking Thursday to the Sacramento Press Club, Yudof said UC's unionized workers received 4 percent raises this year, while non-union employees are taking pay cuts ranging from 4 to 10 percent. He said the university would lay off some...
  • Group Airs Proposals For California Government Overhaul [Proposed: 2/3 Budget Vote Scrapped]

    08/15/2009 12:25:26 PM PDT · by Steelfish · 19 replies · 723+ views
    Sacramento Bee ^ | August 15, 2009
    Group airs proposals for California government overhaul By Jack Chang Aug. 15, 2009 The bipartisan government reform group California Forward revealed details Friday about a package of proposals it plans to place on next year's ballot to overhaul state government and, the group hopes, break paralyzing legislative gridlock. The package includes ideas catering to both Democrats and Republicans, a combination that should inspire more cooperation among legislators than Californians have so far seen, said Robert Hertzberg, the group's co-chairman and a former Democratic speaker of the state Assembly. The group's other co-chairman is Thomas V. McKernan, CEO of the Automobile...
  • California Has Amassed A Mountain Of Debt [Titanic In The Pacific: Legacy of Liberalism!]

    08/12/2009 8:40:24 PM PDT · by Steelfish · 16 replies · 665+ views
    Sacramento Bee ^ | August 12, 2009
    California Has Amassed A Mountain Of Debt By Dan Walters Aug. 12, 2009 What, one might ask, is the appropriate metaphor for California's convoluted budgetary situation? Would be it be Enron, which cooked its books to fool investors and lenders? Perhaps a Third World country whose rulers run up a mountain of debt while squandering revenues? Or both? Whatever it may be, years of irresponsibility by politicians and voters alike have left California with ongoing spending obligations that are nearly 50 percent higher than its ongoing revenues – roughly $110 billion a year in the former and $75 billion in...
  • California has amassed a mountain of debt

    08/12/2009 12:22:25 PM PDT · by NormsRevenge · 17 replies · 998+ views
    Sac Bee ^ | 8/12/09 | Dan Walters
    What, one might ask, is the appropriate metaphor for California's convoluted budgetary situation? Would be it be Enron, which cooked its books to fool investors and lenders? Perhaps a Third World country whose rulers run up a mountain of debt while squandering revenues? Or both? Whatever it may be, years of irresponsibility by politicians and voters alike have left California with ongoing spending obligations that are nearly 50 percent higher than its ongoing revenues – roughly $110 billion a year in the former and $75 billion in the latter – and debts that would be daunting even were the economy...
  • Despite Cuts, State Still Hiring

    08/09/2009 10:33:32 PM PDT · by Steelfish · 6 replies · 337+ views
    Sacramento Bee ^ | August 09, 2009
    Despite cuts, state still hiring By Jon Ortiz and Sarah Frier Aug. 9, 2009 California's government continues to grow despite a historic recession, budget cuts and employee layoff warnings, new data show. About 4,000 more full-time workers drew state checks in June compared to a year before, with the biggest increases coming in prison hospitals, the state's unemployment agency and the Franchise Tax Board. Gov. Arnold Schwarzenegger has initiated the elimination of 7,000 state jobs from the state's deficit-ridden general fund, but it is unclear if that will offset the overall state job gains over the past year. State officials...
  • California Won't Accept Its Own IOUs

    08/09/2009 4:51:50 AM PDT · by TigerLikesRooster · 54 replies · 2,349+ views
    Courthouse News ^ | 08/04/09 | MARIA DINZEO
    California Won't Accept Its Own IOUs By MARIA DINZEO SAN FRANCISCO (CN) - Small businesses that received $682 million in IOUs from the state say California expects them to pay taxes on the worthless scraps of paper, but refuses to accept its own IOUs to pay debts or taxes. The vendors' federal class action claims the state is trying to balance its budget on their backs. Lead plaintiff Nancy Baird filled her contract with California to provide embroidered polo shirts to a youth camp run by the National Guard, but never was paid the $27,000 she was owed. She says...
  • No New Calif. Textbooks Until 2016

    08/08/2009 9:56:45 AM PDT · by nickcarraway · 57 replies · 1,294+ views
    UPI ^ | Aug. 8
    Budget cuts will force the California Board of Education to delay buying new textbooks until January 2016 at the earliest, officials say. A state budget that closed a $24 billion deficit last month dramatically reduced state spending for kindergarten through eighth-grade textbooks, and a result most school districts are also putting off buying new high school textbooks, the Los Angeles Times reported Saturday. California has also moved to allow funds that were supposed to be solely for textbooks to be diverted to other uses -- an amount that totals $334 million this year. The Times said administrators contend that flexibility...
  • Editorial: California just keeps on hiring

    08/06/2009 9:59:42 AM PDT · by NormsRevenge · 5 replies · 495+ views
    InsideBayArea.com ^ | 8/6/09 | Editorial
    OVER THE PAST 12 months, California has lost 759,000 private industry jobs — a 6.0 percent decline. Local governments lost 27,600 jobs, a drop of 1.5 percent over the same period. But it's a different story at the state level, where there has been an increase of 3.600 workers. While some state services have increasing needs during a recession, one has to wonder how the state can justify increasing the size of its overall workforce in the face of a severe and unsolved budget crisis. Economist Brian Wesbury with First Trust Advisors said it is amazing that California can hire...
  • California told to prepare massive prisoner release

    08/04/2009 7:11:19 PM PDT · by Free ThinkerNY · 37 replies · 1,295+ views
    Reuters ^ | August 4, 2009
    SAN FRANCISCO (Reuters) - U.S. judges on Tuesday told California to prepare to release more than 40,000 of its 150,000 inmates to reduce overcrowding in state prisons, which suffer from massive healthcare problems. The cash-strapped state already plans to release ailing and short-term inmates for budget issues. That would clear up to 37,000 beds over two years, estimated California Department of Corrections and Rehabilitation Secretary Matthew Cate. But he said an order from federal judges would set a "dangerous precedent" and argued at a news conference that California had cleaned up prisons and hired medical professionals to fill chronic gaps...
  • Slimming Down the Waste-Watchers Way: A Radical New Diet Plan for California

    08/03/2009 5:54:13 PM PDT · by Lorianne · 2 replies · 283+ views
    Independent Womens Forum ^ | 29 July 2009 | Vicki E. Murray, Ph.D
    No state wants its credit rating to be "within spitting distance of junk," as The Economist puts it-especially not California, which prefers bragging that it has the eighth largest economy in the world. Perhaps bolstered by voters' refusal in May to raise taxes, it appears Gov. Arnold Schwarzenegger has returned to his "don't be economic girlie men" days. Today, California formalizes the budget deal struck Monday night between the governor and California lawmakers to close the state's $26.3 billion budget deficit without raising taxes. The Governator has also launched a new Waste Watchers website, where he urges visitors to "report...
  • Calif. lawmakers pass plan to balance state budget

    07/24/2009 6:54:54 PM PDT · by NormsRevenge · 17 replies · 683+ views
    AP on Yahoo ^ | 7/24/09 | Judy Lin - ap
    SACRAMENTO, Calif. – Lawmakers on Friday approved a complex package of spending cuts, accounting maneuvers and raids on local government coffers to fill California's gigantic budget deficit, providing hope that the state might begin a slow climb out of a deep financial hole. ... The cuts imposed by the Legislature are extraordinary. The deal will mean teachers are laid off, college students will pay more, parks will be closed, and office buildings will be sold off. Lawmakers agreed the scope of the cuts was distasteful, but most said they had little choice. "The only way to do it is to...
  • More than 180 California cities vow to sue state if budget is passed

    07/22/2009 7:07:52 PM PDT · by NormsRevenge · 8 replies · 813+ views
    LA Times ^ | 7/22/09 | Alexandra Zavis
    More than 180 California cities have passed resolutions threatening to sue the state if lawmakers approve a budget plan that would seize $4.7 billion in local funds to help close the state’s massive deficit, according to the League of California Cities. Judy Mitchell, mayor of Rolling Hills Estates and president of the League of California Cities, described the budget proposal as a “ponzi scheme that passes off responsibility to future governors, legislators and to our taxpayers.” The plan announced Monday by Gov. Arnold Schwarzenegger and legislative leaders uses a variety of means to essentially shift part of the state’s $26.3-billion...
  • Sundown for California

    07/22/2009 10:42:07 PM PDT · by grey_whiskers · 10 replies · 868+ views
    Millions once moved to California for its boundless promise, but time has not been kind to the Golden State. Twenty-five years ago, along with another young journalist, I coauthored a book called California, Inc. about our adopted home state. The book described “California’s rise to economic, political, and cultural ascendancy.” As relative newcomers at the time, we saw California as a place of limitless possibility. And over most of the next two decades, my coauthor, Paul Grabowicz, and I could feel comfortable that we were indeed predicting the future. But much has changed in recent years. And today our Golden...
  • Prisons: What the governor proposes(California)

    07/23/2009 7:19:47 AM PDT · by laotzu · 11 replies · 656+ views
    San Francisco Chronicle ^ | 7/23/09 | Chronicle Staff Report
    Gov. Arnold Schwarzenegger has outlined a plan to save $1.2 billion in prison spending. In all, the governor says, the plan would reduce the California prison population of 167,700 by about 27,000 inmates. Some details: Felony no more: Petty thefts, writing bad checks and receiving stolen property will no longer be charged as felonies. Vehicle thefts: Stealing a car won't automatically be considered a felony anymore. Grand theft: Stealing an item valued at more than $400 won't automatically be considered grand theft. Alternative custody: Certain prison inmates deemed low-risk offenders would be eligible to serve their sentences outside of prison....
  • Calif. budget deal: No new taxes, many big cuts

    07/21/2009 3:38:27 PM PDT · by skimbell · 30 replies · 1,209+ views
    MSNBC ^ | July 21, 2009 | AP
    Gov. Arnold Schwarzenegger and California's legislative leaders have agreed on a plan to slice $26 billion from the state’s recession-ravaged budget, cuts that would hit the elderly and poor the hardest. The governor and leaders from both parties announced the compromise late Monday after more than five hours of closed-door talks. If the agreement survives its run through both houses of the Legislature, it would provide temporary relief to an epic fiscal crisis that has captured national attention...
  • California Orders Massive Cuts to Close Budget Gap

    07/21/2009 12:32:59 PM PDT · by kellynla · 57 replies · 1,991+ views
    newsmax.coim ^ | July 21, 2009 | staff
    SACRAMENTO, Calif. -- California may soon be able to stop printing IOUs now that Gov. Arnold Schwarzenegger and legislative leaders have agreed on a compromise plan to close the state's $26 billion shortfall without tax increases. The governor and lawmakers announced the compromise late Monday, nearly three weeks after the state began issuing pay-you-later warrants to thousands of state contractors and vendors. Many recipients had trouble finding someone to take them after several major banks stopped accepting IOUs. The four legislative leaders will begin selling the plan to other lawmakers Tuesday as the best way to get the state back...
  • Two-tier California pension proposal on hold

    07/15/2009 4:53:57 PM PDT · by Amerigomag · 6 replies · 790+ views
    Sacramento Bee ^ | 07-15-2009 | Jim Sanders
    California will not impose a two-tier pension system promising lower benefits to future state workers as part of any wide-ranging deal to solve its $26.3 billion budget shortfall, The Bee has learned.(multiple sources familiar with the negotiations) The controversial proposal by Gov. Arnold Schwarzenegger has been shelved in budget talks. Carroll Wills, of California Professional Firefighters (AFL-CIO), applauded the decision to move more slowly on pension reform. "The pension discussion, to the extent it needs to take place, (should) be a deliberative process of the Legislature," said Wills. Jim Zamora, spokesman for Service Employees International Union (AFL-CIO) Local 1000, said...
  • California IOUs can be considered securities, SEC says

    07/12/2009 3:26:38 AM PDT · by TigerLikesRooster · 42 replies · 2,394+ views
    Market Watch ^ | 07/09/09 | Ronald D. Orol
    California IOUs can be considered securities, SEC says Agency guidance helps create a secondary market for IOUs, helping with prices By Ronald D. Orol, MarketWatch WASHINGTON (MarketWatch) -- The Securities and Exchange Commission late Thursday issued guidance identifying the IOUs being issued by California as "securities," rather than just obligations of the economically troubled state. The Golden State issued the IOUs last week to conserve cash and pay off bondholders. "The staff of the SEC has expressed its belief that California's recently issued IOUs are 'securities' under federal securities law. As such, holders of these IOUs and those who may...
  • Talks intensify over closing Calif.'s $26B deficit

    07/11/2009 12:58:27 PM PDT · by Simmy2.5 · 25 replies · 1,956+ views
    AP via Yahoo ^ | On Saturday July 11, 2009, 3:43 pm EDT | By Judy Lin, Associated Press Writer
    Schwarzenegger, lawmakers express optimism as talks resume to close California's $26B deficit SACRAMENTO, Calif. (AP) -- Against a backdrop of IOUs and expanding government furloughs, Gov. Arnold Schwarzenegger and legislative leaders expressed optimism Saturday that they were moving toward a compromise that could end California's fiscal calamity. Negotiations to close the state's $26.3 billion deficit restarted after two weeks of inaction and partisan bickering. Top lawmakers from both parties said a budget-balancing deal was possible in the coming week. "I would say we're getting very close to a general framework, but there are still outlying questions," said Assembly Minority Leader...
  • Bailing Out Illegals

    07/10/2009 6:29:38 PM PDT · by Kaslin · 36 replies · 2,251+ views
    IBD Editorials ^ | July 10, 2009
    Illegal Immigration: As California issues IOUs to its citizens, another ballot proposition may be brewing to cut off benefits that are draining the state budget. From education to welfare to crime, the cupboard is bare.California is a leader in both government debt and the sanctuary city movement. But as its citizens seek shelter from the economic storm, the question has arisen anew whether its non-citizens and the better life they want takes precedence over its citizens and the better life they are entitled to. In this mother of all recessions, it's getting harder to argue that illegal aliens are here...
  • Calif. furloughs prompt strike threat from union

    07/10/2009 5:12:30 PM PDT · by KingofZion · 35 replies · 1,116+ views
    The San Francisco Chronicle ^ | July 10, 2009 | AP
    Furloughed and fired up, California's largest state employee union announced on Friday it would ask its 95,000 members to authorize a potential strike. Officials with the Service Employees International Union Local 1000 said the union's executive council has approved putting the question to a vote. The union will ask members whether they want to fight further pay cuts. Gov. Arnold Schwarzenegger said the state's $26 billion deficit has taken a toll on everyone, from state workers to taxpayers. He asked state workers for their patience. "As soon as our economy comes back ... then we can go and again put...
  • California Delays $4 Bln Education System Payment

    07/10/2009 2:06:16 PM PDT · by Kartographer · 2 replies · 399+ views
    FOX Business News ^ | 7/10/09 | Stacey Delo
    California delayed a $4 billion payment to its Department of Education system on Friday as the state continues to struggle with a budget shortfall of more than $25 billion. The payment, known as the Principal Apportionment, is the largest annual payment of state funds to California's public education system. The money goes to schools to pay for a wide range of things including salaries. The payment was scheduled for today, which is the last payment for the 2008-09 fiscal year, but will instead be issued on July 30, State Superintendent of Public Instruction Jack O'Connell and State Controller John Chiang...
  • Big banks to stop cashing California IOUs

    07/10/2009 12:49:14 PM PDT · by Kartographer · 22 replies · 1,105+ views
    CNN/Money.com ^ | 7/10/09 | Tami Luhby
    NEW YORK (CNNMoney.com) -- Californians will have fewer places to redeem IOUs issued by the cash-strapped state after Friday. At least three major banks, Wells Fargo (WFC, Fortune 500), JPMorgan Chase (JPM, Fortune 500) and Bank of America (BAC, Fortune 500), will stop accepting the IOUs, as they'd previously announced. More than 60 credit unions, however, will continue to accept the paper.
  • SEC Destroys California

    07/10/2009 7:37:39 AM PDT · by rvoitier · 35 replies · 2,317+ views
    The Market Ticker ^ | 7.10.09 | Karl Denninger
    Well now they've gone and done it: "The staff of the SEC has expressed its belief that California's recently issued IOUs are 'securities' under federal securities law. As such, holders of these IOUs and those who may purchase them are protected by the provisions of the federal securities laws that prohibit fraud in the purchase or sale of securities," the agency said. That was a mistake. Here's why.
  • SEC Says California IOUs Are Legal "Securities"

    07/10/2009 5:33:42 AM PDT · by Red in Blue PA · 23 replies · 984+ views
    CNBC ^ | 7/9/2009 | Staff
    "IOUs" the state of California has issued instead of payments amid its budget crisis are "securities" under U.S. law and their holders and potential buyers are protected by anti-fraud law, federal regulators said on Thursday. The determination comes amid efforts by some entrepreneurs to establish a secondary market for the IOUs, which the government of the most populous U.S. state began issuing last week to vendors and to taxpayers owed refunds to maintain dwindling cash for priority payments, including payments to its bondholders.
  • Big Banks Don't Want California's IOUs

    07/07/2009 8:14:29 PM PDT · by Frantzie · 27 replies · 986+ views
    Wall Street Journal ^ | 7-8-2009 | Ryan Knutson
    A group of the biggest U.S. banks said they would stop accepting California's IOUs on Friday, adding pressure on the state to close its $26.3 billion annual budget gap.
  • Big banks saying no to California IOUs (Creditors Want Cash, Not Promises)

    07/07/2009 11:15:08 AM PDT · by GOPGuide · 51 replies · 3,927+ views
    HotAir ^ | July 7, 2009 | Ed Morrissey
    The financial sector has just delivered a message to California, roughly translated as, “Quit working on cow tails and apologies to long-dead people.” A group of the largest banks in the US has announced that it will stop accepting California IOUs by Friday. The state will run out of cash by the end of the month if it cannot issue IOUs, as long as its $24 billion budget gap remains unresolved: A group of the biggest U.S. banks said they would stop accepting California’s IOUs on Friday, adding pressure on the state to close its $26.3 billion annual budget gap....
  • CALIFORNIA BUDGET CRISIS UPDATE (a liberal perspective)

    07/06/2009 7:16:53 PM PDT · by Amerigomag · 10 replies · 752+ views
    New West Notes ^ | 07-06-2009 | Bill Bradley
    Here’s the latest on California’s chronic-turned-chaotic budget crisis. Not much to report. Governor Arnold Schwarzenegger held an event this morning with some country district attorneys promoting his idea to crack down on potential fraud in the now massive, and heavily unionized, in-home health service program. He says it can save hundreds of millions, public employee unions and Democrats say no, with legislative leaders saying they’re open to some reforms, but after the budget. Not unlike a previous pledge by another set of Democratic legislative leaders to get change the redistricting system. Assembly Speaker Karen Bass boycotted this morning’s Big 5...
  • Wall Street gears up to trade California IOUs

    07/06/2009 6:32:02 AM PDT · by raybbr · 24 replies · 959+ views
    Financial Times ^ | July 5 2009 | Nicole Bullock
    Amid the vacation rentals and used cars for sale, browsers of the website Craigslist will now find a unique offer: for California IOUs. “If you are receiving a Cali­fornia IOU and you need cash immediately, please contact me. I may be of assistance,” reads one posting. Wall Street, quick to spot an opportunity, is also gearing up to trade the payment promises. “We have a whole team working on it,” said Barry Silbert, chief executive of Second­Market, a company that trades illiquid assets such as bankruptcy claims, private company stock and toxic assets. Mr Silbert said hedge funds, municipal bond...
  • California Prints Its Own Currency - A Satire?

    07/06/2009 5:38:55 AM PDT · by SeekAndFind · 26 replies · 1,089+ views
    Real Clear Markets ^ | 7/6/2009 | Bill Frezza
    Following the lead of the Federal Government, California this week began issuing its own currency, which it plans to use to stave off bankruptcy. "As our state staggers under massive debt, uncontrolled spending, and dysfunctional government, we look to the example of our national leaders," said Governor Arnold Schwarzenegger. "When faced with these exact same challenges, Congress started printing money. If it's good enough for Washington, it's good enough for Sacramento!" Called "Individual Registered Warrants (IRWs)," State Controller John Chiang indicated that California would send out $3.4 billion of this negotiable scrip in July alone. Small business owners, government supported...
  • IOUs spell uncertainty for Calif. small businesses

    07/04/2009 6:40:16 AM PDT · by SeekAndFind · 26 replies · 867+ views
    Yahoo News ^ | 7/3/2009 | Michelle Locke
    BERKELEY, Calif. – Business consultant Katrina Kennedy has taken her young son out of preschool and put a family vacation on hold. Dairyman Mike O'Kelly is wondering whether he is going to have to let employees go. The problem? They rely on contracts with state agencies for much of their business and, cash-strapped California may start sending them IOUs instead of money until the state has enough cash to cover all payments. "I've dealt with the state for many, many years, and the failure of the state to come up with a budget has always caused problems for July and...
  • Move Over Fed, California's Now Printing Its Own Money

    07/03/2009 3:14:41 AM PDT · by mylife · 83 replies · 1,644+ views
    Seeking Alpha ^ | July 02, 2009
    Move Over Fed, California's Now Printing Its Own Money Watch out Ben Bernanke, the Federal Reserve now has competition in the currency game. California is planning to create its own money in the form of IOUs, just like the Fed. What is the California IOU – currency or an interest bearing note? Officially the IUOs will be called “registered warrants”. State Controller John Chiang planned to issue $3.4 billion, maturing on Oct. 1 to replace state payments. The interest rate is set to be determined on Thursday, but cannot exceed the statutory limit of 5%. The San Jose Business Journal...
  • California begins issuing IOUs … to the peons

    07/02/2009 4:51:15 PM PDT · by SeekAndFind · 45 replies · 1,408+ views
    HOTAIR.COM ^ | 7/2/2009 | Ed Morrissey
    Facing a budgetary crisis of its own making, California has begun to issue IOUs instead of cash payments to at least some of its creditors. For the first time since 1992, the state government has too little cash to meet its obligations. However, Governor Arnold Schwarzenegger insisted that the state was “responsible” enough for banks to accept the IOUs at face value: California’s controller will start paying many of the state’s bills with promissory notes as soon as Thursday after lawmakers failed to close the state’s worsening budget deficit, adding a new measure of indignity to a state sinking deeper...
  • California - Then and NOW

    07/02/2009 12:58:43 PM PDT · by TheDailyChange · 259+ views
    The Daily Change ^ | 07022009 | TDC
    Hard working Americans = IO,IO,IO, so off to work I go. American Politicians = IOU,IOU,IOU, so on vacation we go, and SCRE! you.
  • California: The Haves and Have-Nots (paid in IOU vs paid in Cash)

    07/02/2009 1:14:19 AM PDT · by TigerLikesRooster · 22 replies · 767+ views
    Seeking Alpha ^ | 07/01/09 | Felix Salmon
    People who get California IOUs People California pays in cash Grants to aged, blind or disabled persons University of California People needing temporary assistance for basic family needs Public Employees’ Retirement System People in drug prevention, treatment, and recovery services Legislators, legislative employees, and appointees Persons with developmental disablities Judges People in mental health treatment Department of Corrections Small Business Vendors Health Care Services payments to Institutional Providers