What is a registered warrant, or IOU?
A registered warrant is a “promise to pay,” or an IOU, issued by the state when there are not enough funds to pay all of its general fund obligations. Registered warrants bear interest and are redeemable by the state treasury only when the general fund has sufficient money. If the Legislature and governor fail to enact a budget that provides enough cash for the state to pay its bills by Thursday, the controller will begin issuing IOUs. Assuming there is adequate cash in the treasury, IOUs may be redeemed on Oct. 1. Both the issue and the maturity date will be printed on the IOUs.
