Californians Getting IOUs Instead of Cash
Unless the state of California, and its governor and lawmakers come to a decision by July 2 on how to solve the budget crisis the state will beginning handing out IOUs rather than cash.
State Controller John Chiang said that the state faces “a fiscal year with a massively unbalanced spending plan and cash shortfall not seen since the Great Depression.” 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.
IOUs will be paid to local governments for social services, private contractors, state vendors, income and corporate tax refunds, and payments for state operations, including legislative per diem.
State Controller John Chiang said that the state faces “a fiscal year with a massively unbalanced spending plan and cash shortfall not seen since the Great Depression.” 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.
IOUs will be paid to local governments for social services, private contractors, state vendors, income and corporate tax refunds, and payments for state operations, including legislative per diem.
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