California to start paying creditors with I.O.U’s
Once again it’s on and it’s the usual suspect. Back in the 90s Cali’ tried to issue “I.O.U’s” to pay 100,000 state workers but was forced by the courts to pay them and then some. According to NYTimes.com… The issuing of the i.o.u.’s would reflect the state’s lack of cash flow and its legislature’s inability to agree on a way to close a roughly $24 billion budget gap, as tax revenues have continued to fall in the state. On Wednesday, as Mr. Chiang made his announcement, legislators continued to debate ways to close the gap in preparing for a vote on a budget presented by Democrats that was all but certain to fail on the floor.
In New York things are not this bad. money wise, but the state senate seems more like Royal Rumble.
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