California's broke ass might have to issue IOUs instead of tax refunds.
With California about to run out of funds next month, deadlocked lawmakers can't decide what to do. Republicans don't want to raise taxes and Democrats don't want to pull from social programs, but neither side wants to see Californians saddled with a useless IOU.
Issued through the Controller's Office, an IOU would serve as "a registered warrant issued on behalf of the state's treasury that lets the individual receiving the IOU know that they will receive their funds at a later date" plus interest. It is not known, however, when the state will be able to make good on their promises should it resort to sending out IOUs.
California has issued IOUs only one other time since the Great Depression.
Many argue that an IOU would be totally unfair, especially since taxpayers can't do likewise.
Let's hope they figure this shiz out soon! The utility company won't take Monopoly Money!
[Image via WENN.]