So let me understand this: I’m a vendor doing construction work for the state, uh, Tony’s Tin Roofs and Tackle Shop. I’m expecting a CHECK, a check that I can cash for hard core greenbacks to pay my employees and my mortgage. Now, I’m told I’m getting an IOU from the state instead of my Benjamins? Are you kidding? And it may not be payable until October?
Californians, this question is for you: What’s up with that?
Please, explain this system, tell me you didn’t vote for this… and what’s the fix?
The fix is to stop doing work for that government. The government must be treated as just another business: if it doesn't pay its bills, and you can't take it to court to force it to pay its bills, you tell everyone and their mother not to do work for that business.
For those who have already done work but not been paid, accruing interest on the account is not a bad idea. Government owes you $10,000, slap a 10% per month late fee. It turns into ~$31,000 after a year. If the government won't pay, take them to court–the Supreme Court if it must be. You're likely to get your $10,000 + court costs, but at least you got your money and you know not to do business with that government ever again.
I would like to know how a new health plan would affect those already on social security.
The real problem is for those who rely on food stamps and the like. What do they use to buy food?
Please find below my suggestion for fixing America's economy. Instead of giving billions of dollars to banks and car companies, that will squander
the money on lavish parties and unearned bonuses, use the following plan:
There are about 20 million people over 50 in the work force. Pay them $1 million apiece severance for early retirement with the following stipulations:
1) They MUST retire. Twenty million job openings – Unemployment fixed.
2) They MUST buy a new American car. Twenty million cars ordered –
Auto Industry fixed.
3) They MUST either buy a house or pay off their mortgage – Housing
4) They must send their kids to school / college /university – Crime
5) Buy $50 of alcohol / tobacco / petrol a week... there's your money
back in duty / tax etc
It can't get any easier than that!
Close the boarders and stop sending jobs overseas. Pay our people better wages. Start taxing foreigners that come over here and open businesses, make welfare recipents required to payback funding that was given to them. Start pying doctors for medicaid services,stop just handing out free welfare and medicaid. Screen applicants thoroughly and follow up.
way back in 2008, when banks like IndyMac and Washington Mutual were going under, Californians panicked, fearing that they'd never be able to recover the money they'd entrusted to these financial institutions.
Well it turns out that fear was misdirected. The FDIC bailed out the banks, but now Californians face another money hoarder that's far less likely to pay up...
So when Californians check the mail around early June, expecting big shiny tax refunds, they'll instead be faced with headshots of Schwarzenegger, along with an IOU for either their money or a DVD of End of Days– whichever one he can come up with first. (Hint: One of these things is in much greater supply than the other.)
Meanwhile, some advice for any taxpayers out there: (Yes, Rep. Charlie Rangel, you can stop reading now.) We suggest claiming every available personal allowance for 2009. Just in case you might need that money any time before 2011." – Dylan and Ethann Ris from
My concern is government take over of our healthcare system. Despite what President Obama says it will affect everyone else's healthcare coverage. The CEO of Google stated he was for the plan because it would save him a lot of money. So companies are going to drop coverage for their employees and put them on the government plan. This plan will drive out private company coverage, cut competition, and cut the quality care this country is known for worldwide. The government hasn't been able to run Medicare or Medicaid effectively. Just listen to what is happening in Canada. Do you want to wait a year for an MRI when you are in pain, and sometimes wait a few years for surgery? Canadians come here for care, Which Country will we go to for surgery–Thailand? We don't have the medical personnel to do massive coverage at once. We need to have private individual coverage for individuals where there is company competition, and individuals are responsible for and held accountable for their usage of the healthcare based on how they take care of themselves. Safeway is an example of a working system. Obama's goal is socialized medicine.
He Tony what was with the way the camerman used the light in your eyes ta make it appear you had snake eyes, will you play that cast again for us? (7-1-09) Or all those pictures of Michael with crosshairs on his picture (it almost seemed to hint/brag at a removal of Michael). Nothing better a gangster likes to do, than to brag to/about the victims hes expoiting. Ooo, it must give you a rush of power, to hold the little old ,feeeble american people in a choke hold, especially knowing you tricked em into trusting them, why dont you come see us? the people youve taken so much from that were losing our homes in your process of removing middle class, those of us to whom reagan brought in plane loads of the cocaine epidemic and then take us to jail on an hourly basis, thereby not only making money as a drug dealer but making money acting as a lawful security administration as well? We know you gotta take us out as a threat to your new vision of your america. We arent the type who hide, were not the type who care if you set us up with false charges, we dont stand up for our rights as a result of seeking the approval of others. We are those who have been abused and lied to for so long, that we have no choice but to awake! I was a victim of corrupt justice and was to young not to realize that you should NEVER NEVER take a plea bargain or trust a corporate government! That public defenders make deals for their carreers progression up the golden ladder. Even with the crime you levereraged me into pleading guilty to, for fear of what other kinds of things you could do to me. I Made it through my sentence. And though you figured you could keep me silent and in shame and out of your hair for the rest of my life and remove my right to own a gun and vote (but youve removed americas right to vote by fixing floridas voters, and are working on the removal of guns from the american people, what is every American a convict now )? I am one case who is gonna backfire as loud as possible on ya. Im Gonna blow the trumpet of warning as loud as possible for as long as GOD allows me. You see, by putting that shameful tag on me you thought you could subdue me with shame, silence me, but all you did is remove any fear that I might be wrong, that my perception of reality might be flawed. Naw. Not to mention, if the american government took the time to silence me a nobody, What does that say? So no. I wont stop. I dont care what youve done what youve been falsely accused of or the color of your skin. I have personally seen and been a victim of our government and judicial corruption. If your eyes have been opened as well and you can no longer squeeze them shut and sleep escapes you as a result. Stand up and fight, bring corruption down from the inside. You and you alone are responsible for any wrongs youve commited or witnessed and kept your mouth shut. This may be your last opprotunity to repent, turn from the direction you face. Dont belike the news, selling your integrity so your boss can pull in truck loads of commercial advertising Dollars for products dangerous to the american people, How can they stand up there lying to us. Do they now just tell themselves that they are just advertising actors. Dont they see they are victimizing themselves as well. We are studying your body language, vocal instability, your eyes and even the way you write out every interaction with your guest. We see when you talk to the nurse through her ear peice, we see her reactions to that interaction as well. You can be assured we are always watching and devising plans for the rescue of the american people. We lead by example, therefore those who follow us are stronger than those who are paid off for their loyalties.
Budgets are easy to manage if there is a LEADER to manage, ergo the problems. National and state governments are care takers of all the woes of society. The individual is not really in any way held accountable to there own health, mental and physical. Criminals are given more care than a child in school, drug addicts and addiction of any kind is given all the free $ required for both mental and physical rehab, but only the healthy get the bill. It has been stated that the average MENTALITY of our populous is that of a 10 yr old, it shrives on entertainment, play, toys of all kinds and dimension, requiring literally constant care and supervision (which is lacking). But NO WHERE is the individual held accountable for their behavior. Our country has literally no standards to follow and meet. All standards in job market, education, have been lowered for the unmotivated, uninspired. Consider public education, I don't even know who is the chair of the Board of Education for the nation, never seen on TV addressing the nation of future plans. Is there a chair or position for Physical Education? NO!!! This is a clear indicator for trouble, and we have it, lots of trouble, but no leaders, just functionaries.
This is so unfair, people need to be able to pay their bills. I don't think you can tell the bill collector...here's a check but don't cash it until October or November. Not good business
it may be located in california ,for now but this incident will not remain localized for long. It is a quetion for the entire nation, so we ask that you not minimize critical event making up our future
So does this mean we can send in I.O.U.'s when taxes come around next year?
It is simple, in california they don't know what they are doing. Balancing a checkbook is a challenge.......
Seems pretty clear to me. The reality is they spend more than they have. CA is known for being a quazi Socialist state. Looks like the nation under Obama is going to head the same way. Health Care, Cars, Banks, what happend to working hard and managing your checkbook? I suggest we have Obama and congress get a lesson from my father.
Californias populist constitution mandates how the state must spend money in a certain way. With its anti-tax parts it cant raise revenue. thus the problem.. the statee may need to redo its constitution to fix this issue. But untill the state fixes its proposition process( used by special interests, as regular voters cant afford to use it anymore) This problem will happen over and over again.
I'ts time to make Cannabis available the same way we do with Tobacco and Liquor we should get that tax revenue.
Miguel in CA
Here's what happened to California:
Its been time to pay the piper for years but no one wants to.
California was golden and booming because of the investment made in inexpensive college education during the Jerry Brown years. We road on the coattails of that for years (silicon valley happened, etc). But Reagan and the conservatives came in and told people they could have their cake and eat it too–low taxes plus prosperity. Well, that is B.S. Californians threw out Grey Davis and scapegoated him when Enron caused us to collapse insead of holding Enron accountable (and the Bush administration) . And put in Gov Schwarzenneger. Well guess what! He finally has to face the bad math he put in place. Grow up those who are prosperous in California. You have so many riches, but you have to sow some of them back into the system if you want them to return value to you again. Grow the heck up and start being willing to share your wealth. It will come back to you 100 fold. And not only that, you'll feel good!
The reason California is in finacial trouble and can't pay there bills is because of illegal immigration, plain and simple!
California's budget woes can be fixed. We have a LOT of illegal immigrants here. You can see them in most towns around any home suppply or hardware store. They geet paid UNDER the table Tony. They pay no taxes. They send their bucks back to their home country. Usually. Where do you think they go when they get injured at work or in a car accident, which incidently, illegals cannot apply for or obtain a license to drive in this state. SO to be perfectly blunt, we MUST fix this illegal alien problem NOW!
I am the operations manager for a home medical equipment company. Many of the patients which we serve are elderly in need of a walker, wheelchair, etc. Many of these patients are in the State funded healthcare program, Medi-CAL. The vendors from whom we buy product certainly won't take an IOU yet we must continue to care for our patient base under the auspices that EVENTUALLY we'll be paid for services rendered. California legislators have demonstrated their inability to balance the state checkbook, so I'm not holding my breath; and ultimately it's the elderly and disabled who will suffer.
Just who do they think they are, my 12 year old brother after i loan him candy money? This is real life, and real life doesn't take IOUs.
Well other people can assume whats going on in our State but I live here.
1st we have WAY to many in goverment here in this state, we could cut the number in half and save Billions.
2nd Arnold refuses to take baby steps with this, he wants the full deal fixed right now, and the Dems want to cut a bit at a time. In the end, this is nothing but REP VS DEM its not about the people of the state.
3rd, They just need to "do it" or get off the pot, I did not vote for Arnold, however I did for some of these idiots that are bickering like school children over a budget that is making us suffer NOT them.
4th, Calif need to stand up to these law makers, and tell them enough is enough, we sit there and shake our heads but no one is sending them letters or telling them we refuse to pay our taxes (there salary) untill they fixe this mess THEY got us into.
But Calif wont, and so we will just sit here and loose billions a day! sad year to be a voter in the state of Calif!
San Francisco Ca
Tony, when we had our last budget debacle, Californians rose up and recalled former Governor Gray Davis. Now, we are all giving Governor Schwarzenegger a free pass when he's brought us to the same budget abyss. I believe that my fellow Californians need to wake up and realize that just because someone is talented in front of a camera, it does not make them a brilliant politician.
iou what a joke if I owed the state or I need to pay my morgage with a iou do you really think they would take it. I don't think so we have to pay our bills or we would lose or home and etc. thank you
We were all high from medical marijuana when we voted...
We are sorry Tony
Unfortunately Tony we did vote for this. CA voters approved measures that they thought would make for a better government, but have ended up making it nearly impossible to pass appropriations and tax bills, as well as our annual budget. We need a 2/3 majority in the Senate and Assembly, but due to polarized ideological beliefs (the whole state is NOT liberal) the two parties almost always have a divided vote that is far short of 2/3rds. Add to this the current economic mess and our budget (which actually hasn't been approved on time since about 1997) is in even worse shape.
In order to fix this we probably need a constitutional convention. The last CA constitutional convention was in 1879.
That is an absolute joke! If I provide a service for you, I expect my payment in CASH. An IOU is simply a slap in the face....sorry I am entitled to my payment.
This problem is simple... Liberal Democrats can not control their spending. The fix is just as simple, just a very long to-do" list. First, California needs to curb their hand-out programs. Welfare payments needs to be cut and limited. Welfare recepients need to go back to work. California does not comply with the federal "back to work" program started by Bill Clinton. You say there are NO JOBS in California.... Who says you need to live in California. There are 49 other states out there you know.
Next, California MUST be more business friendly. California punishes success. Big corporations need tax breaks and incentives to move back to California. It seems that the democrats wants everyone to think that corporations are the big evil. But when was the last time a poor person offered you a job?
Those are just two of the many things that will put California back on track...
Its perfectly understandable that states are starting to hand out IOU's, the economy doing poorly and there are conscequences. The bills WILL be paid in matter of time, but what we need to do now is hope for stabilisation.
it is wrong what are the companies going to pay there workers!
If they legalize pot they would have instant cash on hand. Its a multi billion dollar industry
You could take it "JG Wentworth" and discount it on the secondary markets like an award settlement.
The politicians of this state have repeatedly raised spending without thought to how will they pay for it in tough times. I voted down the tax increases last election to finally make them control their spending. They are the highest paid legislature in the coutnry, with per diem and car allowances. It's time they trimmed expenses including those commission jobs(with car allowances and other perks) they created for their buddies. This is the only way they will cut the budget.
If I thought they made an honest attempt to control spending, then I would go with more taxes, but they have yet to prove it.
that is wrong what are the companies going to pay there workers with?!
What;s up with that? I am going to Europe, in January. I pray that a miracle befalls me, and I never have to return to this country! It is is "free-fall"...on all fronts...and, there is nothing...and, NO ONE either capable, or willing, to save it. The government is about perpetuating itself. The people are more interested in self-indulgence, self-interest, childish pursuits, and ignoring the lethal issues that America faces. The result? There is no one at the helm...the people neither realize, nor care what is happening...and, The End is closer than Americans think...period.
Start paying all elected officials with IOUs and see how fast they get a budget passed.
I know what we need to do and that is Impeach this Administration. Get rid of both parties, start a new system and fix these problems. Randy
I will participate if Arnold and the state follows suite.
the state is taking a wrong thing do. It should do what colorado is doing of taking money from next years bugdets
i'm simply out of words...is this what it has gotten to?? IOUs...?i'm simply out of words.
Does that mean when income tax comes due in April, Californians can send the government an IOU and pay three or for months later? Seems fair.
Uh, can I give them an IOU when I am required to pay taxes on April 15?
Tony – It's because we, Californians, keep voting for high cost boondoggles via our state's flawed Proposition system. Each year we vote in billions of dollars for school overhauls, new transportation projects, etc. and don't raise taxes to coincide with the new spending. Our proposition system is the root of this problem and needs to be dismantled.
I live in san diego, can't find a Job anywhere so far, so these IOU's definitely give me "A glimmer of hope"...(sarcasticly speaking)
If I remember right, California is one of six states that does not tax lottery winnings! Has this changed yet?
So..can I pay MY bills with IOUs? Didn't think so..
Again, the people never get help. Only banks.
california has stopped paying its bills. can the residents of california stop paying state taxes?
The economy in Calif. is in big trouble but this is compounded by the inability to get any compromises from the GOP legislatures. Their so called principles/ special interests are more important than the people of Calif.
The state is in a crisis and we need cooperation beyond politics from all parties.
Those California businesses should return the IOU with their next scheduled required estimate income tax payment! See how California Dept of Revenue would like that! I'm sure not so much.
Well, what do you expect? With a national dept that's over a trillion, Im surprised this is only happening in California
You pack up your crew and go home. You then design your own IOU and file it with your tax return.
The IOU idea isn't all that bad in my opinion. I just hope the state of california won't mind when I write them an IOU for my taxes, utilities bills, car payments, or anything else I need to pay for until October. This is a nice little break! Oh yeah, about that speeding ticket payment I need to make, I will send in an IOU.
I cant believe CA is issuing IOU's. if they don't have the money then they need to start shutting down government to save. govt. must balance budgets.
Until California can make some tough budget decisions of their own, why should the federal government bail them out. They need to figure out where they can cut and do it. If Uncle Sam sends them money, spending as they know it will not stop. I have a feeling 49 other states will be there with hands out. More Obama spending? Not at all what the U.S. needs.
Are the California House and Senate getting paid with IOU's? They should be. They would probably come to an agreement very soon!
What would California do if a disaster happened now, like a major earthquake. I would guess that aid to its citizens would be severely delayed. Nevermind the rebuilding that would be needed for roads and infrastructure.
This is what partisans politics gets you in CA. We have the highest gas price, yet the state refuses to tax oil companies on drilling rights, like other oil producing states. By some estimates, we're losing a billion dollars a year in potential revenue. At this point, We'll take Sanford or Palin over Arnold....
Will our nation be issuing IOU's if the Government keeps spending on every program their little hearts desire? Our leaders are following California's irresponsible ideology, look who is leading the bills on Capitol Hill. Same mindset.
Answering to the lady who asked "where these people will go?" (referring to the mentally disable they were trying to rehabilitate
To their house to watch TV, after after all the cost of the "rehabilitation" is higher than the return of the investment or in other words ist the cost of diminished returns.
Welcome to the real world
I live in CA, and I'd like to know if this opens the door for residents to send and IOU to the state in place of our taxes. What kind of precedent does this set? I can't wait for a lawyer to challenge paying their taxes with an IOU. What's good for the goose...
This all started when Californians voted to recall Gov. Gray Davis. Residents of the the State of California want and think that services provided by the state are a right, but are not willing to pay for them. The answer is: Raise taxes to cover the programs Californians want, if they are not willing to do that, then cut all but essential areas of state government and raise the fees and taxes on what is left.
Californians are paying the terrible long range price of Prop 13. Requiring a 2/3 vote instead of a majority has frozen the legislature along party lines. Nothing is getting done.
2nd the republicans and the governor will not raise any type of tax and have made a pledge to that effect which again freezes any action.
3rd idiotic refusal to compromise on the part of the governor and the legislature. Grow up Sacramento – you are really hurting everyone. All adults learn to compromise and communicate effectively.
When is the News Media going to stop lying to the American People, The News Media knows why the Unemployment rate is above 9.5%, and the 6.5 Million jobs lost, I guess this is Reagan, Bush trickle down economy, When You outsource Millions of Jobs to China, India, and everything Country in the world, It set off a domino effect,
Because companies who provided jobs supplying the parts and materials needed by the companies who outsourced our jobs have gone out of business because the those companies who left the United States are now getting their supplies and materials in the Countries they went to and pay penny's on the dollar for wages,
Then we turned a blind eye to our border and allow Millions of Illegal aliens come in.
Well all I can say is welcome to George H.W. Bush's and Bill Clinton's New World Order, And Hello Third World Country USA!!!
As My Little Daughter use to say, Duh
You can't look into that News Camera everyday and keep acting like You are amazed at what is happening, Because You know as well as the American People know that the Greatest Nation on the Face of this Earth has been sold out by the Leaders of this Country !
The problem is the 2/3 majority needed to pass a budget, a governor who has a low apporval rating and throws temper tantrums and legislators who refuse to budge. It is one royal mess!
Ridiculous! A better idea? Why don't our state congressman and the our Governator get the IOUs until they agree on the budget? No, we did not vote for this. In fact, maybe we should.
We are missing the point. The state politicians have said that they couldn't compromise over the past few weeks on the budget. Well, why weren't they working on this for the last YEAR! Do a story on all of the other senseless bills that passed since last July. How many of those impose some type of spending?
Next election, EVERY candidate that says "incumbant" on the ballot should be voted out. Thier priorities are all wrong.
Cities and Counties do yourself a fovor, save your cash and send the state IOU's if you owe them money.
Arnold warned all that this would happen months ago. they do things differenty in CA (see Pelosi, Boxer, ect.)
Sorry I forgot the "FIX"
People in this state need to refuse to pay taxes untill there is a budget on the table period! Those "law makers" that dont work to fix it we tell them they wont get our votes.
This state marches for Ilegal Alien rights pretty much on a daily base, where are they marching now when the state needs there voice? and/or there tax dollars that I am sure most that march dont pay.
Calif needs to stand up and say enopughs enough, or just sit back in there coffee shops and complain and sadly I think this state will choose the coffee....turned into a bunch of whiners not fighters.
So . . . the net effect to the recipient of the IOU is nothing, right? Did I miss something? I mean, someone gets the IOU, the recipient takes it to a (participating) bank, the bank cashes it, gives the cash to the recipient, and then the bank holds on to it until Oct.? Doesnt sound like a problem. Do the banks discount it when its presented by recipient? Is there a mandatory hold period? Please clarify.
I just saw your comments on the IOU system in Calif.
This is like a pay advance loan. You are digging the hole deaper.
It is very simple. We voted down Arnolds Tax Increases, so now to get even Arnold is vetoing all Budgets that come to him that include a tax increases of ANY KIND. He chooses to write IOU'S instead of approving a budget that would tax the special interest groups. And WHY you ask ....BECAUSE HE CAN
I spent my rent money to go and attend that memorium ( i am from Orlando ) and i bought a package for Friday and Saturday with the hotel that is not chagable and refundable. Now that they cancelled it if i went i would spend even more money on being those to days there and not being anywhere near Michael so i chose to stay and now i am out of my rent money, I lost a working week ( i hope i still have a job ) and i lost my last chance to meet my hero and pay my respects. I don't have any more money to buy a new trip. How hard is it to give us his fans our closure and peace! How can they do this to us, it means the world to us to be able to be near him one last time....I will never have this chance again, i am devastated.
A couple weeks ago CNN interviewed Obama's head economist and asked her why they refused to give California and assistance, when Schwartzenegger asked the governement for help. Her unchanging response was, "We have faith that California will get out of its financial problems on its own". LOL - how about you guys interview her again now?? And I have to ask - How come no one is asking why the Congress & the President aren't helping? Why can't Congress take the IOUs instead of small businesses? They just handed over cash to the Auto Industry, Wall Street.. ?? Why not a registered IOU??
I lived through the last state iou in the long run it cost the state more.the furloughs don"t work because they call you in to work over time for the people that are off.they need to make deep cuts in the prison system where alot of the budget goes to pay people who make no contribution to society.
This is the biggest joke i have heard for a long time.......they must think people are complete idiots..........i wonder if Arnie and his sidekicks get 'IOU's too????..........im guessing NOT.........
Hey i was wondering, if the State of California is gonna start paying people with I.O.U., next April come tax time , instead of paying my taxes – can i just send the State of California an I.O .U? Seems only fair to me.
It's ridiulous!!! This is the way this state has done business for a while, and instead of tackling the real problems they're just putting the burden on the people who make this state run. We have no money? Raise taxes and cut spending! They need to make some hard executive decisions instead of trying to take the easy road out for themselves, and making state employees and businesses suffer as a result. Shame on them, and come election season they'll be out of power.
Oh, and by the way there was no vote for IOUs, but I guess we somehow did vote for Arnold, which probably was ultimately the same thing.
I am all for IOUs if they are being accepted accross the state. I want to know that when I go to the grocery store that they will accept my IOU. S___ runs down hill, they last person holding should be the person that the state owns the money to. Maybe instead of check cashing places we can have IOU cashing establishments. Instead of the 1% charged to cash your check, because it is an IOU, I will charge you 2%.
I am a Californian with a disabled son and a terminally ill husband. Gov. Schwarzenegger is a hard headed moron who chooses to cut social programs like healthy kids which gives discounted health benefits to hard working parents for their children. This complete failure here is due to one thing...Schwarzenegger's desire to not raise taxes for the top percentile of the wealthiest Californians. He swept into office under a lie...the energy crisis which the previous Governor had measures in place to fix. So this moron/actor/Gov got to look like the hero once those measures took effect. I have 1 comment for this guy...I didn't vote for you and I can say that proudly and loudly. And to the people who did...1 word GED.
There is a saying that as California goes, so goes the nation. Pretty scary and too often true. This problem is the result of overly generous social programs and an anti-business tax structure in California. Sound familiar? The same stuff is now being pushed through congress. The only difference is that California cannot print money. Nationally, this means higher taxes and inflation to pay debt. Grab your wallet.
So, when a vendor takes the IOU to the bank do they get money at THAT point? They should be negotiable at ANY bank that received bailout money!
And NO, we did NOT vote for this, the voice of the people has fallen on deaf ears with our Governor. He has ignored the basic principal that you have to pay for what you need, and you do that by raising taxes. There's no way around it. Instead he has chosen to make massive cuts to vital programs. On top of that our state requires a SUPER MAJORITY to pass a budget and we have a Republican Governor and Democratic State Legistature. I hope everyone remembers this during mid-term elections. A straight Democratic vote may be just the ticket we need!
Is the California government also going to waive the penalities that employeers are going to get for not paying there wages and 941 taxes on time, as a result of these vouchers?
Do you think I can pay my mortgage, buy gas and groceries with an IOU? NOT
Well Vendors working for the state of Ca. dont exactly hire Americans in construction to begin with so why do I care if they dont get paid? I mean we have one vendore called Nobest and all you see are illegal immigrants being hired. Your gonna have to do alot more than using the corrupt construction industry to get sympathy from me.
Perhaps California should have legalized cannibas after all.
I mean, if this really couldn't be avoided at all, at least people would be a little more giddy about their financial hopes and dreams being flushed down the fault line.
Thanks for the excellent work at CNN, I sure enjoy your reporting.
The story in California is that the voters have required a 2/3rds majority vote to pass the budget. We had propositions to change that to a super-majority (60%?), but they failed. Since proposition 13 limited property tax increases (in the 1980's), and the Republicans refuse new taxes, the state has not been able to increase revenues to keep up with increased costs.
At this point our governor and the Republicans in the legislature have decided that the public wants to make social policy through tthe budget, and I think this is true. Folks are refusing new taxes, and expecting that social programs and education will be cut. The target here I think are the immigrants from south of the border, who form a convenient scape-goat for the problems of the state. The result will be fewer emergency rooms, children and working families undergoing deprivations, the loss of many first-rate teachers, an increase in juvenile delinquency, an increase in contagious diseases, etc., etc.
I think the banks will cash some of these IOUs, or at least loan money on them, for some businesses; I could be wrong about that.
yours truly, Mark Foote in Petaluma
The problem is actually the lawmakers,... they are tending to stall to make background deals to compliment their interests, while allowing the people of the state to suffer.
For example, I have a friend who works for the state, a single parent,.... how will he provide for his nine year old daughter when both his pay and the days worked will be cut?
You do not see any lawmakers jobs being cut. No, they were giving themselves automatic salary increases unitl lately. How come we (the people of California) do not make any cuts on the true wasters of money,... the lawmakers not doing their jobs that we voted them in for,.....?
nothing in ca. surprises me my family has lived in ca. over 100 years for fifty years we were in business in 1993 i got sick had to sell business with a multi million dollar lease on property the city eminent domain property broke sales contract b.k family NO CA. politican on any level helped, today there are hotels on are property next to DISNEYLAND and the family lost everything, nothing any CA. politican does has done or will do surprises me they have done that for twenty years
Install common scense people in office, e.g. typical hard working Americans who think common. _Take out the educated fools.
Handing out IOU's only prove that having a Degree means one is qualified to think up foolish (complicated) ideas! (Reserve that task for the CIA).
Should Cali residents start relocating to other states? What do we have to look forward to if cali government can't pay it's bills? Will Cali become like it is in the movie Mad Max Beyond Thunderdome (1985).
Sounds familiar to you?
The U.S. dollar is an I.O.U. nothing anyways. It was backed by gold and redeemable for bullion until 1971. Now it is backed by nothing just like these I.O.U's. They are both the same monopoly money joke pulled on us by the government so they can print themselves up as much as they like.
On one day I received my contract for the next school year, two days later I was laid off. I am one of the June statistics for the unemployed. I have watched my state loose its status as a prime educator and now I am watching my state become financially destroyed. I did not vote for this. I have watched legislators and administrators raise their pay checks while the programs that would benefit those who really need it loose funds. I have seen fraud deplete the coffers. This is devastating. How much longer can I hold my head high and claim I am a Californian. I say let's scrap all the legislators and find those who can actually get something done for the mainstream people.
Hey Tony, This is Tony in Kansas.It appears our own government we have grown to trust is dwendling in their ability to prove to all of us Amercians that they do not know,nor understand their own economic systems they have so allowed to crumble in their intervention.Are we to become the USSA?Thanks a concerned veteren of our armed forces.
What about penalties? You know if I was to give the State an "IOU" I'm sure they would have an interest charge or something. I'm curious whether they will offer anything for there delay of payment???
I'm a State worker and the Governor has taken a total of 15% from our salaries. I'm upset because this crisis is a State issue and the California Highway Patrol are exempt from any pay cuts. Why aren't they participating in the pay cuts? And it has been told, that the CHP just received another pay raise during this week. It's not fair and I wish CNN can investigate and find out why are they exempt. This is affecting all of California and the CHP needs to do their share just like the rest of us. Please cover this story for all of the State workers that have received pay cuts.
The problem goes back to 1978, when the voters passed proposition 13. In addition to freezing certain property tax rates, it added a 2/3 majority requirement to pass any new taxes. Because it always requires a couple of republicans to pass a budget in the largely democratic legislature, the result each year is a dismal compromise, pleasing no one. There is no obvious solution.
They should send the do nothing legislators the first IOU's.
The big question with the IOU's is will the banks cash them and hold them for the state. If the banks don't take the IOU's and cash them for us, were in serious trouble.
There needs to be some movement by both republicans and democrats in the State Senate and Legislature. Taxes will have to be raised in order not to cut programs to the bone. They should be working around the clock to solved this ASAP. Not one of them can even think of asking us to re-elect them. They are fired as soon as their terms are up!
Why don't any news programs report the real reason that California is in the condition it is in. The public employees unions are getting 4-12% raises across the board when the private sector are laying people off. The Public employees union pays 80-85% benefit cost where the private sector pays 20-25% The unions in California are way out of balance with the private sector and the private sector cant pay for it any more. You all talk about the children, the elderly the disabled that are getting programs cut, ask, then (confirm) what the unions are getting from this deal. They will scream pay cuts benefit reductions and so on but confirm what the pay for a low level, mid level and high level (tier 1) pay, benefit and retirement program cost the tax payer, compare it to the private sector and that will be the real story of why California is where it is today.
the 3 at 50 retirement, 90 % of the highest wage at 50 for the rest of your life and full benifts, California cant afford that, yet children, elderly, schools, prevention programs loose while the unions gain every year.
THE AMERICAN DOLLAR IS AN IOU NOTHING ANYWAYS. It is no longer redeemable for gold.
If the government can bail-out wallstreet and the auto industries, government can surely find a few $$$$ to to help support the states with their shortfalls. Atleast for essential services!!!
It's hard to get my mind around it. I lived in California for 30 years...what once was a beautiful state with plenty of money has turned into one of the most thankless places in this country to live. You either have to be a millionaire to afford property and the taxes, etc. or a prisoner in one of their numerous prisons to survive decently out there. If they stopped pampering their prisoners with the comforts afforded to "free" people, they could recover alot of their expenses...they are criminals after all, why should they get TV's and free medical care? Or, maybe they should split the state into two states and their reserves wouldn't have to stretch so far...each state then would be eligible for government funding.
Hello Tony, 07/02/09
I'm like all the other middle class people in America, Please, are you really kidding me?? So... If the State can use IOU's does that mean that we the people of California can use the OU's to pay for our electric, our medications, our food, oh yes, what about our health insurance if were so lucky to have it? that would be a great Idea if this would be possiable. Almost forgot, why can' the state just pay Arnold with an IOU, that would be a good idea, lets just start with him.
What happens if the IOU gets lost? Are you SOL?
Low taxes, amendments, and elections have consequences. Now people are living with those consequences.
No WAY! I have been to the observation deck over 20 years ago I could barely get close to the window much less a ledge...I feel dizzy just thinking about it.
Perhaps the question should not be..., Did I vote for this but rather what am I going to do with my next vote. The good residents of California should be questioning how our current staff of incompetent elected leaders could take a State like California, and drive it collectively into the ground. The message to all incumbent elected officials is that you will not be re-elected because you have not collectively done your job.
That also includes Mr. Schwarzenegger whose lack of leadership definitively entitles him to being the true terminator of many peoples aspirations and hope!
I guess ,in California, an IOU is business as normal. They just better hope the Hatfield's and McCoy's all live in the eastern US. Get Real! All your doing is sending the message that its OK to slow-pay your creditors and not take responsibility for your committments. Sends a great message.... I'm going to see if my local grocery store and mortgage company will take one.
This should come as no suprise to anyone! The government can do whatever they want whenever they want. Clearly the Governator thinks he's in a Hollywood movie and can make changes to the script as he goes along! I wonder what would happen if we the people of California sent in IOU's to the State's Franchise Tax board on April 15th when our taxes are due! What a joke!
I'm a Californian State employee who works at a Hospital for the Developmentally Disabled. Our Gov. has taken 3 days of pay from us each month in which we are expected to work. With all of these sacrifices that we the workers are making, what about the Gov. and his staff, what pay cuts have they taken in our States time of need. I.O.U 's don't pay the bills or the mortgage. How do you keep the State from folding when the people are out on the streets while our Gov. sits in Sacramento and smokes expensive cigars. Were are being robbed.
Let's take a look at the root of the problem. California is on uninhabitable land, and has a higher overhead cost than any other state in the country. Money problems isn't anything new to the state. They will need to step up and create many more creative and innovate solutions to this long term problem. IOU's is something you do in 4th grade. Taking this passive approach could eventually open a door to a problem that will ripple out throughout the whole country. Did they learn anything from our recession?
What is the diffrence between what is happening now and a depression? unemployment is increasing, home values decreasing,
oil/gas prices going up blue collar people,s hours being cut, no pay increases except for the executives that got us into this mess.
There is a small vault of gold in the Pacific: but it collapes and was only the trade vault for pacific delivery to India... they never much left the Equatorial zone in ocean navigation... Atlantis it all sunk remember: coastal living when the ocean rose...
In real civilization: gold is only a tool of material use: and not one of trade...
The State can start mining federal land reserves of gold in the State to generate a new type of coin: or it can simply start selling refined sea water to Nevada...
The State must begin the census early: and tax all illegal immigrants: giving them legal Statewide residential status... While it would cost them to move away and into any other State: yet they would not be naturalized and be still held under foreign citizenship status.
California: money requirements... Without the USPS or without vast knowledge of State law, policy, and resource status... I can not add much else.
Why is our goverment is not only broke, but it is also broken? It has been this way for some time now, and the reason stems from greed.
Our government allowed a man to steal billions over more than twenty years, and did nothing to stop it. They have allowed many companies to move operations to other countries, and have also allowed many companies to enter the country, building plants and producing products, only to have the majority of the income return to their home nation. Our government has been rebuilding countries all over the world, all the while there are bridges collasping and trains crashing into one another because of inadequate maintenance due to a lack of funds. Then to add to all of this we now have unemployment in the range of 6.5 million.
Wake up and smell the coffee, while many americans cant afford medical care, illegal aliens are entering or country, and upon entry are receiving welfare benefits that are often denied to native born american citizens.
I feel sorry for President Obama, because he will not only get the blame for what has happened, also has to revive an economy brought down by greed, and plain old fashioned stupidity.
Not to be race ignorent, but with illegal immigrents crossing califronias borders daily. Say an illigal immigrent has a business and needs a so called, IOU, is there a process that would be able to weed out good business from those that are fronts for workers who are in the country illegaly?
Tony, I work for the STATE OF CALIF., let me tell you in the Past months we have taken a 10% paycut in the form of work furloughs equals 2 days unpaid off a month. Instead of putting a tax on liquor,cigrettes. Arnold wants us to take another day off without pay. That equals 36 days a year without pay! This will cause me to send my car back to the bank. There a lot of folks in the same or worse spot. Now the State could elimate upper management postions such as Associate Warden's postion. In the past years there used to be only 2 Associate Warden's per prison now there are 4 to 5. Elimate the use of state cars for upper management to use to go home and force them to pay for thier own gas and cars like the rest of us. Stop feeding the inmates desert such as fudge ice cream, drumsticks ice cream. The state is using the backs of the employee's to cover up thier abuse of power! The congress folkes here in Calif need to take 15% cut, give up thier cars, and per diem. I am sure there are a lot of other things that can be done! We here in the center of Calif. need water also so the farmers can grow food and the farmworkers can get back to work. Why is it always the folks at the bottom who have to carry everyone?
Im a resident of california. The state was in chaos When Arnold was elected. When will people wake up. How could you elect the terminator, someone with no public office experience to the highest office in the state. Most people know nothing about who they are voting for. We live in a world where looks and fame get you everywhere. Maybe this is a wakeup call but I dont think so. We were lucky when we elected Ronald Reagan but at least he was the head of the screen actors guild at one time and had some experience. You wanted the terminator now you got em.
California Economic Plan: 1. Raise taxes on companies, in addition to the most severe environmental restrictions in the nation to encourage them to cut expenses (jobs) and/or move out of state. 2. Provide state health care, education and other benefits to thousands of illegals. 3. Depend on increasing home values for property tax revenues. 4. Continue the usual partisan politics in Sacramento, etc. Result: The mess we are in!
Trade gold for payment, we need to o back to basic...pay for services rendered or stop rendering the services.
If Governor Schwarzenegger wasn't so busy telling President Obama how socialist his medical program was he would be able to run the state of California. People who live in glass houses usually don't throw rocks.
Self serving: United States of America politicians.
Do they REALLY believe in their basic political party's philosophy, or are they showboating?
They know what the consequences are, yet they insist on not acting in the best interest of the state's or country's citizens.
The only answer can be, corruption, the fear of alienating their financial supporters.
Corruption: Campaign contributions.
Campaign contributions: Corruption.
I heard CA. was going to give welfare recipients IOU's. What's a mom going to do; Take an IOU to the grocery store to get juice for the baby? California needs what many other states already have, a constitutionally mandated balanced budget! The Federal government needs to have that too.
How about setting up a dollar a week program, and people with intregity to govern it . with this program , it could stimulate the flow
of cash to go around to help with the credit crunch . Its time to put aside political views and work together for one common goal .
Can we all get that plan??? IOU, IRS WILL PAY IN OCTOBER, MAYBE? HOPEFULLY I'LL HAVE IT THEN!!! THANKS!!!
IO Who?? Give the Governator one. Isn't everyone sick of government crybabies playing monoploy with your money and future. I would like to know who is eventually going to step up, unify this country, and give it back to it's people. Lives of thousands are going into the can. Someone must deliver us from the government spending, waste, lack of responsibility, and greed that drives every decision.
Thank liberals. They mandate that programs are paid for, then reject the tax increases necessary to fund their mandates. 70% of California's budget has been mandated by the idiots who live there. When said morons wake up and understand that you do not need a California Bureau of Home Furnishings to protect you from yourself, maybe they can balance their state budget.
TONY, IT IS SAID SO GOES CALIF., SO GOES THE U.S., 1ST MISTAKE
BUILDING THE PAN-AMERICAN HWY; FOR MARSHALL PLAN BUT
DIRECT ACCESS TO U.S. BROKEN BACKDOOR CALIF.
1ST PROBLEM BROKEN HEATHCARE SYSTEM; 2ND PROBLEM
BROKEN EDUCATIONAL SYSTEM; 3RD PROBLEM BROKEN
TRANSPORTATION SYSTEM. 2ND MISTAKE REMOVING ENGLISH
AS MANDATORY LANGUAGE; 3RD MISTAKE ALLOWING COMMUNITY
ORGANIZERS, LOCAL, STATE, NATL ELECTED OFFICIALS ALONG
WITH AMNESTY INTL, ACLU AND OTHER ORGS TO STOP ICE AND
ID THEFT RAIDS BUT PUT TOGETHER UNDERGROUND RAILROAD
FOR ILLEGAL ALIENS THAT WOULD MAKE HARRIET TUBMAN'S
LOOK LIKE A TOY............IF AMERICAN CITIZENS DON'T HURRY AND
STAND UP CALIF., AND U.S. WILL GO FROM THAT SHINING CITY/
COUNTRY ON THE HILL IN THE HISTORY BOOKS TO ONE OF
THOSE FALLEN COUNTRIES IN THE WORLD CIVILIZATION BOOKS.
THE FOUNDING FATHERS PUT TOGETHER A LIVING, BREATHING
DOCUMENT THAT COULD STAND THE TEST OF TIME BUT IT CAN
NOT STAND UNDER PRESSURE OF TO MANY PEOPLE AND THE
EXPLOITATION OF LOOPHOLES...........
I just have to say that it is sad that Micheal Jackson died. But please give it a rest . I love watching you guys however for the past week every time i tune in all i see is micheal Jackson ...he is dead ...it is now old news we don't need to see the man's life picked a part on speculation.
There is much more pressing news such as north korea shooting off four missiles today...now that is news that affects the world.
who cares about micheals will or wether or not he was thin and frail he is dead nothing is going to bring him back. Just do a nice tribute for him after all the facts are in.
Obviously Arnold has failed to fix California's financial problems as he once stated he could. Maybe we need to elect someone who knows finance, instead we elected a movie star that has more money that he knows what to do with. If he got an IOU, it wouldn't matter. Lets get someone in office who would care to get an IOU.
The News Media is saying that the best part of Michael Jackson was Brooke Shields, and the little white girl.This little white girl who is suppose to be Michael Jackson Child. This is the way white peoples are, they always choose white people as the best, even at an African American memorial. Jeffery Toobin was offended when it was said at the memorial that Michael Jackson was the best ever.I would like Jeffery Toobin to know that African American are the best, even if he don't want to believe it. I want to say that the little white girl is not Michael Jackson child, Michael Jackson were influenced by the white hangers-on to get those children either by adoption, bought, or in some other way just for this purpose (his death) and to rid him of his money. I don't believe any of those children are Michael Jackson.
O.K. Tony, let's have a wee bit of fun, Tony-to-Tony.
Regarding that sequence: 07/08/09. Sorry, you're a bit ahead of yourself. It's not today (July 8th, 2009). You were going by the usual (American) dating system of month followed by day (as opposed to the old "Colonial" day, month, year).
But this time, you have to yield, Pilgrim. The key word here is "sequential." Sequence is sequence. Not American sequence, British sequence, or any other kind of sequence. Just "sequence."
What's more, it's not partial sequence or half-sequence or para-sequence or quasi-sequence. Again, it's sequence across the board. That would be, first, the day, which naturally comes before the month, which, in turn, comes before the year. So 07/08/09 will be: 7th August, 2009.
So you have about a month to go, Tony. Sorry to bust your chops, Man!
omg are you joking?? this is getting ridiculous i mean i have been watching all of this on tv and wondering when will there be a break ? now sending iou's well what will happen now when you have 10,000 employees wanting to claim their money??? another shot at the us economy
I would say to all officials that are issued IOU's, tell their wonderful boss they are issuing an "I'll Be Back When You Pay Me". California wide strike might make our foreign elected governor do something real for the people of CA.