EveryJoe » IOU http://www.everyjoe.com Sports News - Tech Reviews - Entertainment - Life Tips for EveryJoe Tue, 24 Nov 2009 21:25:55 +0000 http://wordpress.org/?v=2.8.4 en hourly 1 California IOU Program Draws to Close http://www.everyjoe.com/articles/california-iou-program-draws-to-close/ http://www.everyjoe.com/articles/california-iou-program-draws-to-close/#comments Thu, 13 Aug 2009 22:56:26 +0000 Mark Ellis http://www.bizzia.com/?p=35612 Post from: EveryJoe

California IOU Program Draws to Close

]]> 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 1992. The September 4 date will be officially approved by a state board consisting of the controller, the treasurer, and the finance director which will meet on August 21.
 
California struggled with a $2.8 billion budget deficit in July and was forced to issue the IOUs after running out of cash. By issuing IOUs, California was able to continue providing funding for education, debt service, and other expenses that the state constitution, federal laws, and various court orders mandate that the state must always pay.

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Post from: EveryJoe

California IOU Program Draws to Close

]]> http://www.everyjoe.com/articles/california-iou-program-draws-to-close/feed/ 0 California Hands out First Batch of IOUs http://www.everyjoe.com/articles/california-hands-out-first-batch-of-ious/ http://www.everyjoe.com/articles/california-hands-out-first-batch-of-ious/#comments Mon, 06 Jul 2009 00:20:18 +0000 Mark Ellis http://www.bizzia.com/?p=31771 Post from: EveryJoe

California Hands out First Batch of IOUs

]]> 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 Fargo have decided to accept the vouchers until July 10.

According to a statement from Wells Fargo, though, the bank is certainly “reluctant” to start accepting the IOUs, but they have strongly encouraged California officials to do everything they can to get the budget issues settled. Several banks around California, mostly the smaller banks, have yet to decide whether or not they will accept the IOUs.

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Post from: EveryJoe

California Hands out First Batch of IOUs

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