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John Chiang May Give IOU’s

August 19, 2010

Today, California State Controller John Chiang told the Sacramento Press Club that he may issue IOU’s in lieu of paychecks for state employees on September 1st. Will your bank or mortgage company take an iou? I don’t think mine would. This is coming at a time when there is a budget deficit of 19.1 billion dollars and the Legislature is on a one month vacations with only the legislative leaders in Sacramento. Currently the Governors office is busy fighting several employee unions in different appeals courts over the legality of forcing the employees to take furlough days. It seems like this time would be better used to work on the budget and get this problem solved. How much will the furloughs save and how much do the lawsuits cost? I don’t know the answer to this question but the Governor says it costs roughly fifty million dollars a day for every day we go without a budget.

So will the banks give you a loan to help you cover the difference between your IOU and your regular check? See this previous Post on bank budget impasse loans and what banks will provide them and which ones won’t. Currently that I know of Golden 1 provides them or Safe credit union but I’m sure most will come on-line as this comes to closer. Hopefully we don’t get to that point.

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One Comment
  1. people are stupid

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