California Back to IOUs

The California state budget crisis and impasse has triggered a repeat of the issuing of a form of IOUs rather than cash to certain state providers. As a previous post noted, the legislature – by retiming tax withholding – was able to bring in enough cash to stave off the need for IOUs over the past few weeks. But now that temporary remedy is running its course and the state – rather than literally running out of cash – is beginning to ration resources. The “registered warrant” form of IOUs – shown in the picture – is still not slated to be issued until perhaps October.

But health care providers will be receiving a form of IOUs according to a report at http://californiawatch.org/watchblog/health-facilities-see-300-million-month-get-ious-week-4313

Note that UC employees are insulated from IOUs. You will be paid!

Meanwhile, there are reports that the governor is meeting with legislative leaders on the state budget after a prolonged absence of such negotiations.