Come September 4th, the struggling state of California should finally have enough money to not have to issue IOUs to those who should instead be receiving income tax returns. The news comes from Controller John Chiang, who cited current cash-flow projections as showing that California needs only to borrow $10.5 billion for the whole year and $1.5 billion by August 28 to meet its needs.
 
Since July 2, California has issued 327,000 IOUs to its citizens, in all totaling around $1.95 billion. This was the second time that the Golden State was forced to issue IOUs, the first time occurring in …read more

California residents still waiting for their income tax returns may have already received their IOU as the debt-ridden state scrambles to get 29,000 IOUs, worth more than $53 million in total, into the hands of those owed. So far, California has been unable to negotiate any solution to even begin to solve the state’s massive budget deficit.
The IOUs will be issued at a 3.75 percent interest rate and residents will be able to take them to cooperating banks to receive their money. Not every Californian financial institution will accept the IOUs, but major banks like Bank of America and Wells …read more