Results tagged “johnchiang”

State Controller John Chiang today said the issuance of IOUs instead of paying bills can stop on September 4th. His suggestion still must be approved by the Pooled Money Investment Board, which controls the state's cash flow, according to the Sacramento Bee. In July, California began issuing IOUs because a revised budget was not in effect. So far, 327,000 totaling $1.95 billion have been sent out. "The State of California owes a debt of gratitude to the thousands of individuals and businesses that were forced to bear the brunt of the State's chronic fiscal mismanagement," Chiang said.

A state board voted today to hand out IOUs that will be repaid on October 2nd at the earliest. Although Governor Arnold Schwarzenegger's staff wanted a repayment date to be set for as last as next year June with an 1.5% interest rate, staff with Controller John Chiang said people need their money and next year would be too late. Ultimately, the Pooled Money Investment Board sided with Chiang and put the interest rate at 3.75%. "In 1992, CA IOUs were at 5% interest," twittered John Myers from KQED, noting that it will be interesting to see if people buy and sell IOUs hoping to make a profit. Wells Fargo and Bank of America have said they're willing to accept IOUs before July 10th. $140 million in IOUs will be sent to people expecting income tax returns. A full list of where IOUs will be going is here.

Come June 15th--that's just 13 days from now--the state of California could be a path to having no money, Governor Arnold Schwarzenegger told the legislature yesterday. Tough choices lie ahead, such as those we've been hearing about since last week like the cutting of most all state parks and all of welfare. He's urging lawmakers to pass those budget proposals within the next two weeks, a short time to solve a $24 billion deficit.

After deferring a $150 million payment to Los Angeles County, the Board of Supervisors has voted to take California's controller, John Chiang, to court. The payment was withheld because of the ongoing budget crisis; the Board, however, calls the deferment unconstitutional and says the revenue the state owes the county is badly needed," abc7.com is reporting. Los Angeles is not the first, or only county in California to sue the state and the controller. San Bernardino County's Board of Supervisors also voted to sue when a $204 million payment needed for welfare and other programs was deferred this month. Other lawsuits are coming from San Diego, Sacramento, and San Joaquin Valley, too.

That's how bad the budget is. State Controller John Chiang today announced that he will have to delay $3-plus billion payments, including state income tax refunds, health, welfare, education and other programs. "With no signs of an economic recovery in sight, it is critical that the Governor and the Legislature enact a sound budget solution that provides much-needed cash by February 1," Chiang's website stated. "If not, the State will be $346 million in the red at the end of February, and $5.2 billion in the red in April." Payments will be doled out 30 days late, but if February 1st comes around and no budget is set, they could be delayed another 30 days.