Calif. controller: IOUs signal fiscal mismanagement
SACRAMENTO (AP) – Thousands of Californians will be hurt and it will cost millions if the state is forced to hand out IOUs instead of payments next week, the state controller said Friday as lawmakers remained no closer to a budget compromise.
State Controller John Chiang said Gov. Arnold Schwarzenegger and lawmakers need to come up with a complete solution to the state’s $24.3 billion deficit.
“Resorting to IOUs will harm thousands of Californians and cost taxpayers millions,” Chiang said in an interview. “Running the state off the cliff is no way to make a political point.”
Without a new budget, Chiang said he will have to start issuing $3 billion in IOUs Thursday. Students expecting college grants, disabled people and low-income seniors would not get paid if that happens.