Budget update- state to issue IOUs

Faced with a $26 billion deficit, state officials are set to begin issuing IOUs later today to pay for part of California's bills. Those on government assistance, including the elderly, disabled, and low-income individuals, will still receive their regular checks, while businesses with state contracts and taxpayers awaiting refunds are most likely to receive IOUs. Payments to state workers, schools, Medi-Cal providers, and other services are protected by law from receiving an IOU instead of a real check. As part of the budget crisis, Governor Schwarzenegger declared a fiscal emergency and ordered government workers to take a third unpaid furlough day each month. Larry Mantle gets the latest on the ongoing budget battle.

Faced with a $26 billion deficit, state officials are set to begin issuing IOUs later today to pay for part of California's bills. Those on government assistance, including the elderly, disabled, and low-income individuals, will still receive their regular checks, while businesses with state contracts and taxpayers awaiting refunds are most likely to receive IOUs. Payments to state workers, schools, Medi-Cal providers, and other services are protected by law from receiving an IOU instead of a real check. As part of the budget crisis, Governor Schwarzenegger declared a fiscal emergency and ordered government workers to take a third unpaid furlough day each month. Larry Mantle gets the latest on the ongoing budget battle.

Zev Yaroslavsky, Los Angeles County Supervisor representing the 3rd district.

Frank Stolze, KPCC reporter

Gary Toebben, President and CEO of the LA Area Chamber of Commerce

Julie Small, KPCC's State Capital Reporter