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"California is facing a budget crisis caused by combination of outsized budget gaps, unusual budget rules and a morass of financial obligations approved at the polls. The state's July 1 budget deadline passed without an agreement in place, and the state's controller began printing i.o.u.'s in lieu of cash to pay taxpayers, vendors and local governments. "
"The budget cuts Mr. Schwarzenegger has proposed to make up the difference, if enacted, would turn California into a place that in some ways would be unrecognizable in modern America: poor children would have no health insurance, prisoners would be released by the thousands and state parks would be closed. Nearly all of the billions of dollars in cuts the administration has proposed would affect programs for poor Californians, although prisons and schools would take hits, as well."
"The state's controller, John Chiang, said California was facing "a cash shortfall not seen since the Great Depression" and has exhausted all other financial options for paying its bills. Mr. Chiang issued 28,742 warrants totaling $53.3 million. If state lawmakers fail to reach a budget agreement by the end of August, the amount would grow to $4.8 billion."
http://topics.nytimes.com/topics/news/national/usstatesterritoriesandpossessions/california/budget_crisis_2008_09/index.html
In California, Even the I.O.U’s Are Owed
But across California on Tuesday, many vendors who had been told they would receive the i.o.u.’s instead of actual money said they had not yet received them. And if they do not arrive soon, they may be hard to turn into cash.
http://www.nytimes.com/2009/07/08/us/08california.html
PILOT - CANADA (1975) (HQ sound)
http://www.youtube.com/watch?v=_bbezaBrumg
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