Why No State IOUs? There Is Cash On Hand
You may be wondering why last summer at this time the state was issuing IOUs and this summer it isn’t – despite a budget crisis. Note first that last summer a budget was in place. One had been enacted in February 2009 and, despite voter rejection of various budget-related propositions in May 2009, there was authorization to spend. This time we have no budget so some payments are not being made – which saves cash. The state controller has just issued his report for July 2010. The state has on hand roughly $6 billion in “unused borrowable resources” compared to…