Posted June 26th, 2009 in
California Budget Update
Yesterday, State Controller John Chiang announced that the State will begin issuing registered warrants, commonly known as "IOUs", on July 2nd if a new State Budget is not in place. Traditionally, the State has covered cash shortages created by late Budgets through short-term borrowing. This year, however, a combination of the credit crunch on Wall Street and the State's sagging credit rating has made that impossible.
