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State IOUs Could Stop in Early September

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An IOU warning at an ATM | Photo by alicegop via Flickr
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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.