California IOUs Due To Be Issued Today,

San Jose Mercury News:

SACRAMENTO -- In a move certain to draw national ridicule and exact financial hardship on business owners and taxpayers across the state, California is slated today to begin paying billions of dollars in bills with IOUs instead of cash.

Nearly 30,000 IOUs totaling more than $53 million are expected to be sent out by state Controller John Chiang this afternoon, the day after Gov. Arnold Schwarzenegger declared a fiscal emergency in the face of a staggering $24.3 billion deficit. The state Legislature remained in its familiar state of gridlock, raising the prospect of an extended standoff that further damages the state's financial reputation.

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Read the whole story: San Jose Mercury News

Comments

[Halter]

The schools are falling apart, property taxes are based on longevity of ownership-not the value of the property, and the 8th largest economy in the world is failing because a foreign governor is vetoing the balanced budget presented to him by the duly elected legislature. Every crackpot idea can go to a direct referendum with enough signatures. Prison guards have a golden key to access whatever their hearts and retirement funds desire. Emergency rooms serve as walk-in clinics for the masses without health insurance. The weater, however, is great. Broken doesn't begin to describe California.

[nogimmicks]

Bravo, Arnold. Force these people to stay within the budget. The balanced budget must be constitutionally mandated.

[runfastandwin]

Arnold was the one that unconstituionalized a balanced budget, when he called a special election right after his recall victory.

[Doug Watt]

Nice how the Mercury News asserts "The state Legislature remained in its familiar state of gridlock" when in fact the legislature again passed a budget and the governor again vetoed it.

We have the Governor to thank for the current mess.

[Tim303]

Yep. Let's by all means keep on giving handouts to (ie not taxing) tobacco and gasoline--they're such poor little dears!

[dandypuddin]

Only Americans would rather slash funding for education, teachers, cops, firefighters, programs for the elderly and indigent, needy children, and issue IOUs than raise taxes. The horrifying slight raise in taxes. Gosh, the GOP sure has brainwashed us to our detriment.

[RogerHWerner]

And the really interesting thing is there is no direct correlation between taxes and economic growth but you wouldn't know that listening to the GOP. When GHWBush raised taxes in 1992 (he of the "Read My Lips No New Taxes" quotation), the country began its longest peacetime growth spurt in history. Taxes are necessary. Americans don't pay too much tax we don;t get enough direct benefit from what we pay and that's why people object. At least that's my problem.

[Tom95134]

RECALL!

RECALL!

RECALL!

RECALL!

RECALL!

RECALL!

How does that feel Mr. Governator? Where are all those answers you had when you were cheering on the recall of Grey Davis?

Have you finally figured out that all the power to govern this State has been stripped from your hands and put in the hands of the minority party and in the hands of the great unwashed rabble through the use of the initiative process?

[dandypuddin]

Recall all the state legislators. Throw em all out. Toss out the 2/3's Rule and repeal Prop 13 for a start. And California may just want to think about a tax increase somewhere as there is nowhere else to cut.

[RogerHWerner]

What we need is a new constitution on that eliminates government by ballot initiative. I don;t so much blame the legislature as I do the governor and the voters. Californians love to pass unfunded ballot initiatives or fund them using general funds. Our elected officials don't control the majority of the budget and when we tie their hands with the two thirds rule how on earth can voters get angry? It's our fault. I didn;t vote for Prop 13, I didn't vote for Schwarzenegger, and I don;t vote for ballot initiatives that lack an independent funding source. Yet I am a voter and a citizen and it is still partly my fault. Voters have been told by the elected leaders they can have all the services they want and not pay for them. Voters believed this crap and many still do.

[iceage7]

The chinese are waiting and watching. They are going to buy california on the cheap. they are just waiting for cali to go down to its knees and snap it up. Hey we better start learning chinese. All businesses will be conducted in english, spanish and chinese. mark my words. China will come with an offer. 43b is chap change for china. China has over a trillion dollars in surpluses.

[GrumpyinAZ]

Whatcha mean, going to? Just keep shopping WALMART, everything will be fine

[macintoshsauce]

&^%$ China.

[gopSTEALSyourTAXmoney]

It's hard to tell the women apart from the men.
Especially with their clothes off.

[RuthlessDictator]

Hope you don't live in Cali and say that. Halliburtan's "little shacks" will take care of you!

[spiritpony1]

it will be interesting to see them and the Hispanics duke it out---

[SimJack]

And all the while I thought love meant never to say IOU. One of these days we'll get over our disilluisoned bad selves. Next check CA Franchise Board gets from me will have a picture of the Conan on it lovingly coddled in those same letters 'IOU' plus, on the reverse side... Hasta La Vista Baby, Eat My Rented Dust.

[themodernleader]

The California Governor of a rising country going into a depression would be able to cultivate a majority to rationally govern. In a productive, achieving organization that Governor would be seen as a competent, even outstanding leader.
The maligned, even broken, Governor Schwarzinegger is administering a declining, decaying State. The other elected leaders are interested in their own selfish self interests and their own political positions instead of the common good. Selfishness dominates selflessness.There is no center of common cause. There is only a denial of grim reality.
The competent and great leader is impossible in a failing and falling organization wherein the membership refuse to be led. We see before our very eyes the breakup of American democracy. And we refuse to believe what we see. Johnny, please, oh please, tell me it ain't so.

[dandypuddin]

California, with a GDP larger than most countries, is a declining, decaying state? I don't think so. Financial gridlock and short sighted, poor financial management, yes.

[RogerHWerner]

Could you please rewrite what you wrote in English?

[Tim303]

Taxing tobacco is selfish?

[JBS]

You know, if the State of California won't fall off into the Pacific Ocean by itself, I think the Governor of Nevada should start working on the state line with a chisel and help it along.

[macintoshsauce]

How very trollish of you.

[dandypuddin]

Isn't the line about California falling into the ocean a little hackneyed?

[RogerHWerner]

Nevada is in worse financial condition than California. Without California, there wouldn't be a Nevada economy.

[Tim303]

I know. All aboard the Schadenfreude express!

[BikeFreak]

This is a joke, right?

This has to be one of the more stupid things I have heard in a long time!

[Cybersquirt]

it's actually happened before.

[gopSTEALSyourTAXmoney]

Sure is the truth!

[4TJefferson]

Thanks to "True Lies" AH-nold and KEN-RON Lay for this mess. We were robbed of $20 billion during the "so-called" energy crisis. AH-nold should have raised taxes to pay for the robbery, but NO. Now the chickens have come home to roost.

[Cybersquirt]

in case you've forgotten, they sucessfully scapegoated davis for that mess.

[4TJefferson]

I did not forget. However, Grey Davis did not do himself a favor with his own neglect at the wheel why we were being robbed by KEN-RON. He should have declared emergency sooner and taken over the power plants & grids. This would have been seen on the right as a massive government takeover, but it would have at least got to the cause quicker rather then slower.

[dandypuddin]

Perhaps the economic collapse, housing collapse, and high unemployment might have something to do with California's current financial blight. That and never raising taxes.

[Tim303]

"Hasta la vista to the car tax, baby!"

[marijam]

This is ridiculous! Even Reagan raised taxes when he felt that he had no other choice. And, no, Rush, that wasn't before he saw the light, either.

[lianmolive]

I agree with so many posters here. Can we send Uncle Sam an IOU for our taxes?

More importantly, will the landlords and credit card companies take an IOU from us if we get them from the state? Fair is fair.

[sueinmn]

Can tax payers send IOUs into state also? This should be a two way street. Time to repeal prop 13 yet? Time to get a handle on illegals sending their earnings home instead of supporting the state they work within? Time to get American jobs for Americans back? We are all watching all over the nation waiting to see if this gets handled or a total meltdown happens. Are other states likely to fail or is CA just unique?

[markm8128]

You are welcome to come to work in California's fields. There is a job waiting for you, because the illegal immigrants have been leaving en mass, and we don't have enough people to do the job. Bring your grubby clothes, and a big hat. Be prepared to get down on your knees for 12 hours at a time, and oh, yes,...we a have been having 110 degree weather..so bring alot of water.

And don't expect to send your earnings anywhere, because you will beng for minimum wage...or less...recieving no benefits, and living in a rundown shack with no toilet.

[marijam]

Try working in the Kansas oil fields in the middle of summer or in the middle of winter and live in a tent. Americans can and will do the work, if you don't pay them slave wages, that is.

[dandypuddin]

Americans have no idea of how much food and wine prices would go up if we sent all illegals home. I haven't seen many Americans picking lettuce, grapes or strawberries lately.

[basta]

California, the tenth biggest economy in the world, going belly up. Watch out. The second meltdown is coming.