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

[tomasedison]

Pay your bills deadbeats. It costs money to live so face up to the facts of life. There are no free rides in life.

[RomeoMD25]

California just can’t seem to beat the habit of government spending. The latest proposal coming out of the state legislature originally had $11B in cuts to state services, but that proposal was shot down. So while California burns, literally and figuratively, the state legislature sits there battling back and forth on “to cut, or not to cut.” My advice to California: cut the fat and start doing what’s best for your constituents and your state not your lobbyists, special interests, and your own pockets.

[Tim303]

Please do move to a more empty state if you don't like living here. You can breathe the free air and be lonely and depressed in any of the third-world style ones that can't lose money cos they don't have any. I recommend Colorado.

[Tom Spettigue]

But, spending $787 billion on a Stimulus package, that's worth defending...

...because, you know, it was pitched by a Democrat. You're all as partisan as the Republicans who failed to call Bush on his fiscal irresponsibility.

[Cybersquirt]

what are you talking about?

[unbozo]

I don't understand Schwarzenegger. He isn't planning on running for public office after he ends his term as governor, so why not work with the Democrats in the legislature to get a budget past?

Is he afraid all his Republican buddies are going to snub him?

[dandypuddin]

This is not about the Governor not being able to work with the Democrats. This is about a completely dysfunctional State Legislation. Been this way for years. The Governors start out hopeful and quickly realize they are in a hopeless situation. California needs to raise revenue. Period.

[confidance government]

Can you pay your taxes with California's script? I think a lot of people will try to do that, if nothing else out of frustration.

[Mildmannered]

It is time for the governor and the republicans to compromise with the democratically controlled legislature.

[unbozo]

exactly!

[SeenItBefore]

If California can pay debt with an IOU, surely it must collect taxes by IOU.

So, there is the answer for all the problems... a ream of paper and a 12 pak of BIC pens.

Besides, the Federal government has been creating wealth via lines of credit and IOU's for the last 50 years. The Social Security piggy bank is full of IOU's.

[Mildmannered]

the federal government can print money, california can't

[viperhawk2k4]

WRONG! The federal government cannot print money, Only the FEDERAL RESERVE which by the way is a PRIVATE BANK! no thanks to Wilson who happened to sign the Federal Reserve Act! If that peice of toilet paper wasn't signed, we wouldn't be in this mess!

[PWM]

GOP messed up the country, GOP messed up california - anything change?

[DSOTM]

To all companies doing business with California.....

You've been terminated.

[sandiegoconservative]

That made me chuckle. I can imagine you saying it in the terminator voice, wearing sunglasses.

[vagabondvet]

I'm fairly sure this is unconstitutional. "No State shall... coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts"

[DesertDogAlpha]

What happens when government spends what it doesn't have. Maybe President Obama with all his grand plans in listening?

Can't they just tax the top 5 percent in California to pay for everyone else? Sounds like a winner!

[gopSTEALSyourTAXmoney]

The Republicans are refusing to go along with that!

[DesertDogAlpha]

Do you seriously think the answer can be to tax only the top 5 percent and everything else will be hunky dory? If so I have a bridge to sell you. If you tax the most productive people and benefit those who don't contribute to the tax base by paying taxes I can tell you where that is headed. The last taxpayer to leave California can turn out the lights under that scenario.

[patrickhenrypress]

The Republicans want it all done with cuts to programs backed by Democrats. They won't allow taxes to be used, period; yet they're OK with IOUs at 3.5%.

This country's embrace of unregulated crony capitalism, pandering to the right and coddling the richest of the rich (who also seem to be the most vociferous right-wing idiots among us) is destroying the nation.

As a side effect, or perhaps the object of this exercise in futility, California's donations to Democrats will certainly drop if California's economy is hobbled by the stonewalling, fat, pompous Republican a**es in Sacramento.

[Joseph A. Palermo - Huffpost Blogger]

http://www.huffingtonpost.com/joseph-a-palermo/arnold-schwarzenegger-and_b_223658.html

It's the Republicans' very short-term strategy for creating a crisis and then ramming through a giant take-back from working families. Over the long term, they're gonna fail!

[cdrach]

PUH-LEAZE- if by "working families" you mean millions if ilegals getting handouts and enjoying social services they have never paid for and depressing wages then you are dead-on

[Dwight5]

That sounds about right. See the other post on this subject, "Governor Schwarzenegger refuses to take Yes for an Answer".

[Mildmannered]

I hope they fail over the short term too. Time for governor and republicans to compromise. with the democratically controlled legislature.

[macintoshsauce]

Yes, blame it all on the Republicans. Like the stupid Democrats in Sacramento did not contribute to the problems in California.

[gemzenith]

When can I start handing out IOU's? That sounds great!

[topachic25]

How about we stop paying for special education classes, DR's bills, housing, court costs, incarceration cost, food stamps, other and various social services for the overwhelming ammount of people who are here illegaly!! I am tired of the fact that these people receive better care and services than the "average joe american". Our California tax dollars are being wasted on people who don't even belong here. It's a mockery to all of those who came to CA / USA legally and "paid the price" to be here. I mean come on, if you know your not going to get caught, or even if you do nothing will happen, why would we think that this issue would stop.

I love my city (San Francisco), but we are loosing Police Officers, Firemen, Libraries, School Teachers, Grants for College, Businesses.... All the while fees and taxes are soaring for those who actually pay their taxes (not illegals).

I am tired of footing the bill!!!

[mrbuggle]

Illegals pay taxes too. Sales taxes etc...

[topachic25]

Sales Tax? Are you kidding me?

Thats a drop in the bucket from the price we pay as a community, state and country! Think about it.

[sueinmn]

They claim max allowed by law and pay little to nill. They pay into SS and collect SS. Illegals simpky need to go but we are UN AMERICAN if we separate families here illegally. Im Dem and totally against allowing them to stay but Pelosi refuses to send them away. I believe American jobs belong to Americans but too many others do not. Possibly a total collapse is needed to really make change happen. Reid is weak, Pelosi strong. Repubs win again and again. Protests dont work as we have witnessed the gays continue to lose their platform. Banks keep getting while we keep losing. Total collapse MUST happen for real change or its just all smoken mirrors. We need to take back this country and Government refuses to try! WE NEED TO DO THIS with out the help of Government to MAKE THEM? work for us again.

[macintoshsauce]

Actually, illegals can't get legal Social Security cards so they acquire them illegally. Then years later they collect benefits based on that ILLEGAL Social Security number. More often than not they get them via ID theft.

Illegals suck up FAR MORE in government social services than they pay into the system. Reason: Hispanics, that come here illegally, view that it is the government's duty to provide social services to them. My Hispanic father-in-law told me that one.

Illegal Hispanic women that have babies get TONS OF MONEY back from the federal and state governments at income tax time just because they popped out a few kids.

So, in short, illegals suck far more money from the system than they put back into it.

[gopSTEALSyourTAXmoney]

San Francisco?
Full of illegals?
What kind?

[sandiegoconservative]

Lot's of day laborers for construction, lots of behind-the-scene workers for restaurants, delivery, retail. Where do you live?

[topachic25]

Am i hearing a ting of sarcasm?

Take a look at the SF CIty ID Program. That is just a glimpse at the number of illegals that are in San Francsico alone. California is a big state you know! And these are just the people who are confident to come out and receive one of these cards. I think any basic search on Google will give you a glimpse into the mass numbers of illegals we have in this city and others in California!

[dandypuddin]

blame it on the illegals again. that kind.

[dandypuddin]

losing, not loosing. Illegals put the food on your table. Say good bye to your baby spinach salad and chardonnay at a reasonable price.

[topachic25]

I would much rather pay a premium than to continue to sell myself and my country out.....All for a "reasonable price". Pretty silly argument to continue to allow something to go on.

[dandypuddin]

Move to Montana or North Dakota then.

[Ricardo01]

Looks like we will need to destroy many small businesses in California in order to save them from paying higher taxes. Nice work, Arnold.