California Controller Says He'll Stop Issuing State IOUs Next Month

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(Sacramento, CA)
Thursday, August 13, 2009
Anyone with a state-issued IOU can redeem them with interest starting September fourth. 

That’s the word from State Controller John Chiang (Chung)...who announced today (Thursday) he’ll stop issuing the promissory notes then as well.

Capital Public Radio's Steve Shadley reports...
Controller Chiang says now that the revised budget has been passed, the state can meet its financial obligations into the fall....
CHIANG:   “We have determined that there is sufficient cash for the state to make our payments and bills timely and that we can stop issuing the IOUs and to redeem the outstanding IOUs...”
Chiang says the state probably still needs to borrow ten-and-a-half-billion dollars to meet the state’s needs for the remainder of the fiscal year. 

The board that approves borrowing has agreed to meet later this month to give the state permission to apply for loans. 

Chiang says the IOU’s are coming to an end a month earlier than he’d anticipated. 

He says since July, the state has issued more than 325-thousand IOU’s totaling nearly two-billion dollars.