What Do the IOUs Mean for Nevada County?
Today a new fiscal year begins and California is still without a budget solution. The state Controller says he will begin printing IOUs on Thursday that will be used to pay the state’s bills. Democrats have proposed a budget package that would make three-billion dollars in cuts, mostly to education. The package would keep the state from having to issue IOUs for the first time in 20 years. The governor says he will veto any package that does not address the entire deficit. He says the legislature’s latest proposal only, quote, “kicks the can down the alley.” What do the IOU’s mean to local governments…at the least Nevada county ceo rick Haffey says it means the county will loan the state money…at worst the money will not be paid back. “In the past, they have paid their IOUs. It has taken them a while from time to time to pay what they owe to local government, but they have paid them back in the past. I’m somewhat skeptical this time because they have no budget; they have not been ab
