California begins issuing IOUs … to the peons

posted at 3:05 pm on July 2, 2009 by 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 into dysfunction. …

State Controller John Chiang said his office is prepared to issue promissory notes totaling $3.3 billion in July.

It will be the first time since 1992 that California will have issued promissory notes. The move is almost certain to further damage the state’s credit rating, already the lowest of any of the 50 U.S. states, saddling taxpayers with billions of dollars in higher interest payments on bonds that have yet to be sold.

Issuing the promissory notes — formally referred to as individual registered warrants — also will have real-world consequences for those on the receiving end. Small businesses that rely on state contracts will be most affected. …

Bank of America announced Wednesday it would cash the state’s promissory notes for its customers through July 10, bank spokeswoman Colleen Haggerty said. Schwarzenegger and state officials asked other banks to do the same, noting that California has never defaulted.

“We will make those payments,” he said. “We are responsible.”

If they were responsible, they wouldn’t have to issue IOUs now.  The state government has been a model of irresponsibility for the past couple of years as this utterly predictable budget crisis approached.  They raised taxes and then discovered they’d misjudged revenues.  After that, they tried using referendums to get overtaxed Californians to raise taxes on themselves, and got spanked at the ballot box.  With six weeks to go after that, the legislature still refused to make the cuts necessary to avert the crisis.

How, exactly, is that “responsible”?

Felix Salmon at Reuters also discovers that not all creditors are created equal in California’s eyes.  Some people will still get cash rather than a wish sandwich in the mail.  See if you can discern a theme:

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

Figure it out yet?  The people who most need cash get IOUs, while the people who could stand to operate on credit get cash.  I guess this is also “responsible”.


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Comment pages: 1 2

I saw this earlier. I’m perplexed by the reasons.

I’ll wait to see what the logic is before commenting.

AnninCA on July 2, 2009 at 3:06 PM

Well, when you put it in a graph like that, it does look sort of bad…

myrenovations on July 2, 2009 at 3:07 PM

The real question asked when figuring out which to pay and which to stiff is “Who contributes the most to which party?”

Thunderstorm129 on July 2, 2009 at 3:07 PM

Californication – what a friggin nightmare

Ris4victory on July 2, 2009 at 3:08 PM

And I have an invention that could save them.

In the meantime, http://www.ar15.com/forums/topic.html?b=1&t=893220
That says a lot about The One.

IlikedAUH2O on July 2, 2009 at 3:09 PM

And this is the state that Obama holds up as an example for us to emulate?

ksm on July 2, 2009 at 3:09 PM

I saw this earlier. I’m perplexed by the reasons.

I’ll wait to see what the logic is before commenting.

AnninCA on July 2, 2009 at 3:06 PM

Heh. You’re pretty funny.

Vashta.Nerada on July 2, 2009 at 3:09 PM

The perfect illustration of what’s really going on.

tsj017 on July 2, 2009 at 2:27 PM

Oddly enough, Anna, the logic seems to be if you’re in bed with the state, you will not get screwed.

Patrick S on July 2, 2009 at 3:10 PM

The real question asked when figuring out which to pay and which to stiff is “Who contributes the most to which party?”

Thunderstorm129 on July 2, 2009 at 3:07 PM

We have a winner!

Monica on July 2, 2009 at 3:11 PM

oops I meant http://www.ar15.com/forums/topic.html?b=1&f=5&t=893220

IlikedAUH2O on July 2, 2009 at 3:11 PM

California is forbidden from paying state employees with IOUs because of a court ruling from the last time the state issued IOUs.

Mark1971 on July 2, 2009 at 3:11 PM

Through July 10. That’s basically next week only. That’s a lot of faith in CA :)

JiangxiDad on July 2, 2009 at 3:11 PM

You know what makes that even better? If you are a contractor doing work for the state and get an IOU, you can’t pay your taxes you still owe with said IOU. They still want cash.

oddjob1138 on July 2, 2009 at 3:12 PM

Wiemar I’ll be back,coming to a state near you soon.

easyone on July 2, 2009 at 3:12 PM

I see that the politicians that caused this disgusting, hopeless mess took care of themselves and are getting the cash. I think tarring and feathering them then riding them out of town on a rail would just be too kind for the pond scum.

rplat on July 2, 2009 at 3:12 PM

And illegal immigrants get paid in gold bullion.

TexasJew on July 2, 2009 at 3:13 PM

You know what makes that even better? If you are a contractor doing work for the state and get an IOU, you can’t pay your taxes you still owe with said IOU. They still want cash.

oddjob1138 on July 2, 2009 at 3:12 PM

Wouldn’t stop me from sending that IOU right back to the on April 15th. If it’s worth money to them then they’d have to accept it back as the same, no? Might even get a judge to agree with that one.

Thunderstorm129 on July 2, 2009 at 3:14 PM

Legislators and unions. Check

Everybody else. Pound sand.

ICBM on July 2, 2009 at 3:15 PM

I saw this earlier. I’m perplexed by the reasons.

I’ll wait to see what the logic is before commenting.

AnninCA on July 2, 2009 at 3:06 PM

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Skandia Recluse on July 2, 2009 at 3:15 PM

CA will be an interesting state to watch.

Obama cannot bail them out and they are hopelessly collapsing.

As he stands by and watches.

I imagine this will affect his approval number there.

Yes, even CA.

Losing a job does funny things to people.

Stand by.

artist on July 2, 2009 at 3:15 PM

I’ll wait to see what the logic is before commenting.

AnninCA on July 2, 2009 at 3:06 PM

*snicker*

BigWyo on July 2, 2009 at 3:15 PM

Obama, Pelosi, Boxer, etc etc. HOLD UP CALIFORNIA AS THE PROTOTYPE for America. Absolutely disgusting. We, as individuals must do anything in our powers to stop these freaks.

marklmail on July 2, 2009 at 3:15 PM

Wiemar I’ll be back,coming to a state near you soon.

easyone on July 2, 2009 at 3:12 PM

Hey, there already is a Weimar, CA. They were thinking ahead.

WashJeff on July 2, 2009 at 3:18 PM

Amazingly enough the people less likely to sue are also the ones getting hope, while the others get the change.

clement on July 2, 2009 at 3:20 PM

AnninCA on July 2, 2009 at 3:06 PM

*Sigh* You mean you don’t want to understand why? Since there is no logic, I assume that was your last comment.

PappaMac on July 2, 2009 at 3:20 PM

All the leaves are brooooowwwwwwwwnnnn
And the sky is grayyyyyyy……….

Lanceman on July 2, 2009 at 3:22 PM

WashJeff on July 2, 2009 at 3:18 PM

Haha. Must be tiny, I’ve driven I-80 through there several times and never noticed it.

cs89 on July 2, 2009 at 3:22 PM

I don’t really care what you’re talking about as long as you have the Catherine Zeta-Jones pictures up on your web-site.

Plus I’m not moving to California anyway.

perroviejo on July 2, 2009 at 3:24 PM

Hey, this looks a future model of National Health Care as well.
If you are disabled, blind, need special meds, mentally ill
then save up your IOU’s they will do you a lot of good after you are dead.
And I am sure the IOU’s have experation dates – like all of Obama’s promises.

izoneguy on July 2, 2009 at 3:25 PM

Arnold should seize every check for every California legislator, legislative employee, and appointee until they fix the budget mess that they created.

Loxodonta on July 2, 2009 at 3:25 PM

The sad thing is that all these people leaving California will take their stupidity with them and begin electing people in their new states that will then turn them into…California.

jimmy2shoes on July 2, 2009 at 3:26 PM

*Sigh* You mean you don’t want to understand why? Since there is no logic, I assume that was your last comment.

PappaMac on July 2, 2009 at 3:20 PM

I’m afraid you’re probably wrong. Logic, common sense, and that imbecile are complete strangers.

But that never got in the way of any LibSpaz, so expect some serious, circular, nonsensical rationalization in the near future.

BigWyo on July 2, 2009 at 3:28 PM

Stay the hell outta Florida, Kahleefornyah!

Lanceman on July 2, 2009 at 3:28 PM

I saw this earlier. I’m perplexed by the reasons.

I’ll wait to see what the logic is before commenting.

AnninCA on July 2, 2009 at 3:06 PM

LOL LOL LOL!!!!

Logic!

AnninCa you have finally been hymotized by your liberal leaders.
The left does not operate using logic. They operate under crony law.
They screw those with the least amount of power. It is what the left always does. The left is not concerned for the welfare of the people. Here you have a glaring example. I say torch the place – take your insurance money – and get the hell out.

izoneguy on July 2, 2009 at 3:29 PM

I’ll wait to see what the logic is before commenting.

AnninCA on July 2, 2009 at 3:06 PM

Contact California Assembly Speaker Karen Bass. I’m sure she can tell you all about it. But don’t sound angry, or she’ll accuse you of being a terrorist.

Loxodonta on July 2, 2009 at 3:29 PM

Slightly OT, but the sales tax in LA County went to 9.75%, effective yesterday.

califcon on July 2, 2009 at 3:29 PM

In the STATIST Utopia, the ELITES are more equal…doncha know…

Ragspierre on July 2, 2009 at 3:30 PM

CA is at a tipping point. Loads of people are leaving the state, due to the insane tax laws.

From a broad political view? I can’t say this is bad news. I’ve always found that people from the Rust Belt who refused to move perplexing.

There are no jobs. It’s a dismal life. Why dig in?

Same with CA. The Dems will get their way. It’s a welfare state now.

And the tax base will abandon it. Sorry, but ocean views are great, just not THAT great.

Mountains are pretty cool, too.

The discussions about CA’s past as a golden state are so toast.

It actually is just a dysfunctional state, overrun by poor immigration policies, liberal agendas, and probably a heavy dose of over-optimism.

We who live here?

We are over it.

AnninCA on July 2, 2009 at 3:30 PM

Slightly OT, but the sales tax in LA County went to 9.75%, effective yesterday.

califcon on July 2, 2009 at 3:29 PM

If only they raised it to 100%, all their economic troubles would be over.

Loxodonta on July 2, 2009 at 3:31 PM

CA has to be bleeding people.

Can’t wait to see the 2010 census results. They are going to lose EV’s.

artist on July 2, 2009 at 3:31 PM

BigWyo on July 2, 2009 at 3:28 PM

Imbecile’s kinda strong, don’t ya think, Big?
She ain’t that bad.
Not like she’s thewall.

Lanceman on July 2, 2009 at 3:31 PM

The sad thing is that all these people leaving California will take their stupidity with them and begin electing people in their new states that will then turn them into…California.

jimmy2shoes on July 2, 2009 at 3:26 PM

Sadly, I agree with you. And it looks like the first ones that are going to leave are those in Column A; the ones that do not even take up space in a government office chair.

barnone on July 2, 2009 at 3:32 PM

Can’t wait to see the 2010 census results. They are going to lose EV’s.

artist on July 2, 2009 at 3:31 PM

Me too…especially after Obama and ACORN get through with it.

BigWyo on July 2, 2009 at 3:33 PM

Meh…. Pay no attention to California, the state brought in 70 billion in taxes, and spent 88 billion. This problem is soooo easily solvable all California has to do is……only Spend 60 billion a year. What is the difference between what they bring in and what they spend? It’s the difference between broke and having a budget surplus. Spend no more than 80 percent of your actual revenue and reduce every single item on the budget by the percentage rate necessary to achieve that goal, problem solved.

doriangrey on July 2, 2009 at 3:33 PM

Contact California Assembly Speaker Karen Bass. I’m sure she can tell you all about it. But don’t sound angry, or she’ll accuse you of being a terrorist.

Is she the one who marched out of the meeting yesterday? Or is she the one who made the comment about talk radio.

I just lump them all into “into the pockets of the govt unions.”

They couldn’t raise a dime on their own. These are Dems who are bought and paid for by state unions.

What CA is?

Strictly a state that is controlled by the govt unions, which Obama supports.

This is your future.

AnninCA on July 2, 2009 at 3:34 PM

Lanceman on July 2, 2009 at 3:31 PM

Get her on a ‘Nationalized Health Care’ thread.

BigWyo on July 2, 2009 at 3:34 PM

How’s about when it get’s time to pay taxes, the citizen issues IOUs to the state?

hmm?

Zippy_Slug on July 2, 2009 at 3:35 PM

Kulifornia…

the truly needy….funny money

the Statist elites…cool cash

This is a great object lesson of the hypocrisy of collectivist claims to care for the poor and needy.

Learn, folks.

Ragspierre on July 2, 2009 at 3:35 PM

Plus I’m not moving to California anyway.

perroviejo on July 2, 2009 at 3:24 PM

If Obama and the other idiot Libs pass their Cap-and-Tax, Healthcare, and Amnesty bills, you won’t have to move to California — it’ll be coming to you.

AZCoyote on July 2, 2009 at 3:36 PM

Wait until the Franchise Tax Board gets my next quarterly estimated tax payment by IOU. What’s good for the goose…

Cicero43 on July 2, 2009 at 3:36 PM

Look for that UNION label…all those getting cash are all the bosses who really run this state….PATHETIC!

SDarchitect on July 2, 2009 at 3:37 PM

But that never got in the way of any LibSpaz, so expect some serious, circular, nonsensical rationalization in the near future.

BigWyo on July 2, 2009 at 3:28 PM

I give you exhibit A.

AnninCA on July 2, 2009 at 3:30 PM

BigWyo on July 2, 2009 at 3:39 PM

And I have an invention that could save them.

In the meantime, http://www.ar15.com/forums/topic.html?b=1&t=893220
That says a lot about The One.

IlikedAUH2O on July 2, 2009 at 3:09 PM

Well, you may not be aware, but in CA, ownership of AR-15 magazines with more than a 10-round capacity is a felony. And the Dem politicians went into their lunatic workshop and came up with something called a “bullet button”. It replaces the magazine release with a little red (nice touch) gadget that requires a screwdriver to replace your magazine. So while the gangbangers and rioters are blasting away with their Glocks, you’re crouching down with a phillips-head every ten rounds.

Ah, well, at least they havent limited us to black-powder collectibles.

Yet

guntotinglibertarian on July 2, 2009 at 3:40 PM

This is your future.

AnninCA on July 2, 2009 at 3:34 PM

Yes to all your responses, except that last one. I’m doing all I can to prevent the Californication of America.

Loxodonta on July 2, 2009 at 3:41 PM

BigWyo on July 2, 2009 at 3:34 PM

I know, I know.
But she says she’s a fiscal con and a social lib.
Here’s the thing. I think I’ve got her figgered out. Her parents were conservative but she’s been bombarded with liberal claptrap from all other sides since her formative years. She’s prob’ly about 33. But she doesn’t seem to be mean-spirited.
Her generation believes you can be fis/con and soc/lib.
Can’t be one without the other.
Kinda like “I support the troops, but not the mission (read CIC)”
I’ve read her on other posts. She’s not nearly as childishly infuriating as Mr. Pink Floyd and his ilk.

Lanceman on July 2, 2009 at 3:44 PM

How’s about when it get’s time to pay taxes, the citizen issues IOUs to the state?

hmm?

Zippy_Slug on July 2, 2009 at 3:35 PM

~ Terrorist traitor! – Assembly Speaker Karen Falsetto ~

Loxodonta on July 2, 2009 at 3:44 PM

guntotinglibertarian on July 2, 2009 at 3:40 PM

That’s because they instinctively know that when the civil war starts it will start in California and the politicians will be the first ones lined up and shot.

doriangrey on July 2, 2009 at 3:44 PM

AnninCA on July 2, 2009 at 3:30 PM

From the healthcare marxist.

Sapwolf on July 2, 2009 at 3:45 PM

Want to hear something really weird?

I grew up in CA. Left for 40 years. And just moved back 60 days ago.

Crazy? Um…maybe. But Marin County is beyond beautiful. And anyway, I figure that once Obamanomics really kicks in, everybody’s screwed, no matter where they live. Might as well enjoy the weather. And I kind of like being the only guy in my community without an Obama bumpersticker.

Chumps

guntotinglibertarian on July 2, 2009 at 3:45 PM

Cicero43 on July 2, 2009 at 3:36 PM

Lemme know how that works out for ya.
Then I’ll try it ;)

Lanceman on July 2, 2009 at 3:46 PM

In California aren’t “Persons with developmental disabilities” and Judges the same thing? Are they getting paid double?

txaggie on July 2, 2009 at 3:47 PM

That’s because they instinctively know that when the civil war starts it will start in California and the politicians will be the first ones lined up and shot.

doriangrey on July 2, 2009 at 3:44 PM

But it’s just so damned…inefficient…to be able only to dispatch 10 at a time.

guntotinglibertarian on July 2, 2009 at 3:47 PM

BigWyo on July 2, 2009 at 3:39 PM

Yep.

CA is what happens when people let nerve endings and feelings completely take over.

CA goal in life, to be comfortably numb.

If the Matrix sprouts up, it will be there first.

Sapwolf on July 2, 2009 at 3:47 PM

Yes to all your responses, except that last one. I’m doing all I can to prevent the Californication of America.

Let me give you one communications piece of advice. THINK.

Because CA is a case of overly “meta-thinking” for too long.

I see the same thing happening on the national level.

When everyone turns every issue into some Meta-Issue, then it’s pointless.

Politics is and should be about specifics.

Get back to basics.

The rest, in my opinion, is really self-indulgence.

Cut it out, just like we’re cutting up credit cards.

Politics is local, specific, and even quite personal.

AnninCA on July 2, 2009 at 3:48 PM

The State of Texas, with its low tax rates, business-friendly attitude, huge growth of new jobs, and budget surpluses, should humiliate any California legislator who claims that “we have no choice but to raise taxes.”

Cicero43 on July 2, 2009 at 3:49 PM

In California aren’t “Persons with developmental disabilities” and Judges the same thing? Are they getting paid double?

txaggie on July 2, 2009 at 3:47 PM

Lol.
I’m sure, though, upon sober reflection, you will realize how insensitive you have been to persons with developmental disabilities when you lump them in with judges…who are simply morally depraved.

guntotinglibertarian on July 2, 2009 at 3:50 PM

The federal Gov’t is being run the same way and eventually they will be handing out IOU’s to the unwashed masses.

If the Gov’t takes over health care, we’ll all be getting do-it-yourself surgery kits.

RadClown on July 2, 2009 at 3:51 PM

Must we use the word peon. It’s not very nice. It’s meant to discribed a homeless destitute person living outside. Peon comes is actually Latin for a person being urinated upon.

Jeff from WI on July 2, 2009 at 3:51 PM

described

Jeff from WI on July 2, 2009 at 3:51 PM

Crazy? Um…maybe. But Marin County is beyond beautiful.

Arkansas is even more beautiful in many places. But, either you have no money and aren’t really affect by the economics, or you have so much money you aren’t affected.

Enjoy. I’ve enjoyed living in CA for 20 years. It’s nuts, though, politically speaking and definitely from a tax standpoint.

I sure won’t retire here.

AnninCA on July 2, 2009 at 3:52 PM

If Obama and the other idiot Libs pass their Cap-and-Tax, Healthcare, and Amnesty bills, you won’t have to move to California — it’ll be coming to you.

AZCoyote on July 2, 2009 at 3:36 PM

This is exactly right…

BigWyo on July 2, 2009 at 3:53 PM

The State of Texas, with its low tax rates, business-friendly attitude, huge growth of new jobs, and budget surpluses, should humiliate any California legislator who claims that “we have no choice but to raise taxes.”

I always say this to my Texas family, and they alway reply, “Don’t believe that no income taxes mean no taxes. We have our issues, too.”

Care to comment?

AnninCA on July 2, 2009 at 3:53 PM

Wells Fargo is going to accept CA State IOU’s.

Why would they willingly take on more “Bad Debt”?

PappaMac on July 2, 2009 at 3:53 PM

What is happening in California is a preview of what will happen across the US when other countries decide they no longer want to fund our endless supply of entitlements and stop buying out debt.

pedestrian on July 2, 2009 at 3:53 PM

But it’s just so damned…inefficient…to be able only to dispatch 10 at a time.

guntotinglibertarian on July 2, 2009 at 3:47 PM

Dont worry, inefficiency isn’t going to be your worry. Your worry will be increasing your legal limit on the number of politicians and liberal douche bags you are allowed to bag during California’s new hunting season.

Only two politician tags and five liberal douche bag tags per hunter, per season, however on the positive note, no legal limit on smelly hippies… ;)

doriangrey on July 2, 2009 at 3:54 PM

California OK when inhabited by the Native People, the it was OK when the Spanish moved in, then it was OK when the easterners moved in, then it was OK when the Chinese moved in, but then the LIBERALS moved in, and there goes the neighborhood.

Jeff from WI on July 2, 2009 at 3:54 PM

AnninCA on July 2, 2009 at 3:53 PM

And yet, they stay in TX. I wonder why?

PappaMac on July 2, 2009 at 3:55 PM

I’ll wait to see what the logic is before commenting.

AnninCA on July 2, 2009 at 3:06 PM

Translation: I have not got my talking points from Central yet…

Romeo13 on July 2, 2009 at 3:56 PM

We’re in the same boat as California. Instead of IOUs the state is giving out wheels of cheese as money.

Jeff from WI on July 2, 2009 at 3:56 PM

In California using auto-tellers at the bank are there 3 options when making a deposit?

PRESS:
1. Cash
2. Checks
3. IOU’s

Wade on July 2, 2009 at 3:56 PM

I’m A Californian… Get Me Out Of Here!

juanito on July 2, 2009 at 3:57 PM

And no, Ann. I’m from Mountain Home.
Camden’s a-ways down the road.

Lanceman on July 2, 2009 at 3:57 PM

Which is worth more? California $10 IOU or a Confederate $10 bill?

Wade on July 2, 2009 at 3:58 PM

Cash for me, but not thee.

csdeven on July 2, 2009 at 3:58 PM

We’re in the same boat as California. Instead of IOUs the state is giving out wheels of cheese as money.

Jeff from WI on July 2, 2009 at 3:56 PM

Hey, at least you can eat your wheels of cheese if ya need to. Our IOU’s come with three illegal Mexican kids crying and whining that they want to go to McDonald’s.

doriangrey on July 2, 2009 at 3:59 PM

Lance….I have some wonderful memories from my 20′s from Mountain Home.

beautiful country.

I envy you.

AnninCA on July 2, 2009 at 3:59 PM

I just wonder if the Legislature, and Ahnuld, are still getting checks…

Romeo13 on July 2, 2009 at 3:59 PM

I just wonder if the Legislature, and Ahnuld, are still getting checks…

Romeo13 on July 2, 2009 at 3:59 PM

Of course not… They get paid in gold.

doriangrey on July 2, 2009 at 4:01 PM

Well, you may not be aware, but in CA, ownership of AR-15 magazines with more than a 10-round capacity is a felony. And the Dem politicians went into their lunatic workshop and came up with something called a “bullet button”. It replaces the magazine release with a little red (nice touch) gadget that requires a screwdriver to replace your magazine. So while the gangbangers and rioters are blasting away with their Glocks, you’re crouching down with a phillips-head every ten rounds.

Actually, having an AR15, even if registered, is close to a felony, and CA DOJ can come into your home at any time to examine the weapon and decide if you “still need it”. If you don’t they take it away and run a bulldozer over it.

Unless you can prove it, any magazine for any weapon with a capacity greater than 10 rounds and acquired after 2001 is grounds for felony. All guns, no matter the caliber, hand gun, long gun, semi-auto….detachable magazines bigger than 10 rounds are illegal.

Naturally, the cirminals do whatever they want because only the law-abiding pay attention to the law. Concealed carry in major urban areas is limited to cops, criminals and the well-heeled and connected. Joe Plumber, concerned about self-defense because gangs operate in the area…nope. Not good enough cause, and we can’t trust you anyway. Now Sean Penn, there’s a guy we could trust, all those drug things and smacking people, he really didn’t mean it.

Indeed, Chevron is running a radio spot talking about their alternative energy stuff, that begins with how the US looks to CA to see the future. I finally wrote them and asked if they understood what they were saying. No reply…

Harry Schell on July 2, 2009 at 4:02 PM

Before you rush to declare that this priority is set in law, and California had no choice.

Remember who wrote those laws.

MarkTheGreat on July 2, 2009 at 4:03 PM

We’re in the same boat as California. Instead of IOUs the state is giving out wheels of cheese as money.

Jeff from WI on July 2, 2009 at 3:56 PM

California should issue fruits and nuts.

Wade on July 2, 2009 at 4:03 PM

Does anyone still even read the US Constitution? Article 1, Section 10 says very clearly that what CA is doing is illegal.

MikeA on July 2, 2009 at 4:03 PM

Say a contractor in CA has a $700K State job that is done, but he gets paid with a CA IOU. He still has to pay his employees, bills, etc. Correct.

Where does the contractor go for financial relief? Is he not in jeopardy of breaking the law by not paying his employees in a timely fashion? Does a banking institution, like Wells Fargo, loan him money on a CA State IOU as collateral? Doesn’t seem like a very sound Business Decision.

This boiling pot is just now really starting to rumble.

PappaMac on July 2, 2009 at 4:03 PM

And yet, they stay in TX. I wonder why?

Oh, I honestly don’t know what their specfic complaints are about.

I do know they are Democrats in Texas. It’s dangerous there to be a Democrat these days.

They are actually very conservative people, but they have to hide like they are radicals.

LOL*

I frankly think that’s a benefit from this crazy CA tax system.

At least I don’t have to pretend to endorse racism, label people in those terms, etc.

That is worth more than some of you may realize.

I would never, ever live in that type of racist, sexist, ageist environment again in my life.

I was raised in Arkansas. I know all about that.

I’m not going back, and I have absolutely no interest in those who support that.

So I think I get the problem. Escape that type of nasty crud?

You’re in a blue state.

AnninCA on July 2, 2009 at 4:04 PM

California should issue fruits and nuts.

Wade on July 2, 2009 at 4:03 PM

No…. We already got enough of those and look where they got us…

doriangrey on July 2, 2009 at 4:04 PM

IOU”S Fantastic……
Now let’s re-negotiate the State Employees contracts
Reduce State Employees by 48%
Send all the illeagal immigrants back to where they came from, stop the Welfare, and Privatize the failing school systems!

BigMike252 on July 2, 2009 at 4:05 PM

I saw this earlier. I’m perplexed by the reasons.

I’ll wait to see what the logic is before commenting.

AnninCA on July 2, 2009 at 3:06 PM

It’s what happens when you gamble idly and lose.

Not that hard.

bluelightbrigade on July 2, 2009 at 4:05 PM

PappaMac on July 2, 2009 at 4:03 PM

It should also be interesting when the contractor tries to pay the federal withholding, social security and other payroll taxes with those CA IOU’s.

MikeA on July 2, 2009 at 4:06 PM

AnninCA on July 2, 2009 at 3:59 PM

Haven’t lived there for well over 20 years. There was no money then and I’ll bet nothing’s changed.
Oregon seemed to be the place to go. Out of the frying pan, into the fire.
Florida’s the place for me. Nice weather, warm oceans, Republican state (We’ll be red again, I promise) and as far as I can get from the left coast.

Lanceman on July 2, 2009 at 4:08 PM

Just closed the damn thing and sell it for parts. The land can be return to their legit owner: Mexico.

Falz on July 2, 2009 at 4:09 PM

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