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IPFS News Link • Economy - Economics USA

Gov. Arnold Schwarzenegger Will Soon Be Handing Out IOUs

State Controller John Chiang told the Sacramento Press Club this afternoon that he will soon be printing IOUs if the Legislature and Gov. Arnold Schwarzenegger can't agree on a state budget. "If current conditions hold," Chiang said, "we could start issuing IOUs in two to four weeks." The state issued about 450,000 IOUs for two months last summer during a cash crunch as the 2009-2010 budget was being re-written. The state also issued IOUs in 1983 and 1992. Chiang wouldn't give an exact date for the IOU issuance. He said the state's cash position changes daily.

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