| 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 |
The disaster in California, a model for President Obama mind you has led to the absurd development o the state paying in I.O.U's for some of its bills. This questionable tactic and one that seems to fly in the face of the US Constitution, of course the state legislators still get paid in cash, I mean who would want to pay bills with nearly worthless markers from a bankrupt state?
SAN FRANCISCO (Reuters) - Top California lawmakers raised hope on Thursday that an elusive budget deal could be at hand, as officials began issuing billions of dollars in "IOUs" to avoid a cash crisis on the second day of a new fiscal year without an agreement to balance the state's books."I think there is at least a 50-50 chance that we'll find a solution that is acceptable to all parties within a week," Assembly Republican Leader Sam Blakeslee said after the state Senate's top Democrat said Democrats would no longer hold out for tax increases as part of a budget agreement.
California faces a financial stranglehold after lawmakers failed to balance the budget by the start of the state's new fiscal year on Wednesday, leaving a $26.3 billion deficit and prompting Republican Governor Arnold Schwarzenegger to declare a fiscal emergency.
He minced no words on Thursday in lambasting lawmakers for their failure."In four weeks, in the last four weeks, instead of negotiating and coming to a budget agreement, they decided to debate and to debate and to have hearings and more debates and more hearings and finger-pointing and assigning blame. At the end of the day, they haven't accomplished anything," Schwarzenegger said at a press conference in Los Angeles.
The fact that Democrats have finnaly backed off tax increases as a way tp avoid the inevitable cuts is a very positive development, of course its ine thing to promise cuts, another to carry them out.
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