#1 California prepares to stop paying bills ( Feb. checks replaced with IOUs)
01-27-2009, 01:07 PM
- Join Date
- Aug 2005
California prepares to stop paying bills ( Feb. checks replaced with IOUs)
The state of California has run out of money.
Facing a $42 billion budget deficit, State Controller John Chiang told the Sacramento Bee he has already borrowed $21.5 billion to try to cover the state's checks, but by Feb. 1, there will be no more options left but to simply stop paying some of the bills – including tax refunds, welfare checks, student grants and other payments owned to California citizens.
"It pains me to pull this trigger," Chiang said at a news conference held in his office. "But it is an action that is critically necessary."
Federal law requires that many school and healthcare programs – a total of about $6.6 billion in California – must be paid, the Los Angeles Times reports, so Chiang has announced an expected payment freeze on $3.7 billion worth of the state's bills, most of it refunds owed to taxpayers.
But even with the freeze beginning next week, the Times reports, California will still fall $346 million short for the month of February, forcing Chiang to consider something only done once since the Great Depression: issuing IOUs.
01-27-2009, 02:23 PM
This is what happens when you get liberal dims in control, along with wimpy republicans.
01-27-2009, 02:26 PM
of course - it's never occured to them to cut social programs - OR - to get the lefties in HOLLYWOOD to put their money where their collective mouths are and shell out some money.Stand up for what is right, even if you have to stand alone.
01-27-2009, 02:31 PM
you know . . . . they could let the oil companies drill of the coast and rake in a TON of money . . . .Stand up for what is right, even if you have to stand alone.
- Join Date
- Jan 2009
- Central Florida
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