California IOU

I see this as symbolic of not only California, but other States and local governments as the year progresses. Yesterday, Fox News was reporting that not only California, but several other states are facing budget shortfalls in the 25-30% range. It's ugly out there! I expect more government lay-offs as property tax revenues fall short of expectations this fall.

from LA Times:
Reporting from Sacramento -- After trying for weeks to fix a state budget gone out of control, Gov. Arnold Schwarzenegger and state lawmakers stood frozen in conflict Wednesday with the state at the brink of a meltdown.

A day after the state Senate failed in a late-night bid to close part of a deficit now projected at $26.3 billion, California Controller John Chiang took steps to begin issuing IOUs today to tens of thousands of companies and individuals that are owed millions of dollars by the state.