State faces prospect of giving out IOUs

[Madhatter]

California's budget shortfall will hit $41.8 billion over the next 18 months, potentially forcing the state to issue IOUs for everything from its electricity bills to food providers if lawmakers don't solve the problem soon, Gov. Arnold Schwarzenegger's administration said Thursday.

While the state is obligated by law to pay employees, schools and its debts, it could halt payments to vendors who provide everything from the gas for California Highway Patrol vehicles to food service in prisons and utilities for state offices.

http://www.venturacountystar.com/new...s/?partner=RSS

Just great. While the state was operating without a budget, there were a lot of deliveries that weren't made, especially bread and fresh vegetables at MCSP where my son is. Grey bologna sandwiches with no bread for lunch. Hamburgers with no bun for dinner.

If this happens, I can just imagine what our loved ones will go without.

[Morris1]

Mad, I don't think you are going to get much sympathy from the public on this topic. They would be fine with NOT feeding the prisoners if it meant they could still be paid.

[Madhatter]

Oh, I know Morris - but I had to remind them that it will only increase the cost of medical care that they are already bitching about LOL.

[kima]

Unfortunately, the budget shortfall doesn't even take into account the 8 billion or so that Kelso is asking for. Even though that wouldn't all come due at once it brings us closer to a 50 billion deficit (if not more) when all is said and done. YIKES.