IF YOU HAD ANY DOUBT about who the real victims are in the state's budget impasse, all you need to do is take a look at the California State's Controller's website at the long list of those who will be issued IOUs instead of checks from the state because we ran out of cash due to the budget deadlock Tuesday night. I preview a partial list:
According to a FAQ page on the Controller's site, if you're handed one of these IOUs you'll need to hang on until Oct. 1 to cash it unless you bank at one of the few institutions honoring them. Or you can open a bank account at one that does. Bank of America and a few other institutions say they'll honor them through July 10 only.
And here's the kicker -- even if the legislature returns and miraculously agrees on a budget to start state coffers flowing again, you're still stuck waiting until Oct. 1 to cash that check.
If it's any consolation, you'll be paid 3.75 percent interest, adding even further to the state's deficit.
Repercussions from the late-night refusal by Senate Republicans to pass stopgap measures already approved by the Assembly added $7 billion to the deficit, according to Assembly member Noreen Evans. Our governor "actively recruited" legislators to vote the measure down, Evans wrote.
• Student Aid Commission (includes funding for Cal Grants) - $159 millionWhile social service agencies, colleges and universities could temporarily rely on reserves, it's the small contractors and those counting on a refund from the state who are out of luck.
• Department of Social Services CalWorks (temporary assistance for basic family needs, Including specific welfare-to-work requirements) - $495 million
• Department of Developmental Services Payments (funding for regional centers providing services to persons with developmental disabilities) - $363 million
• Department of Mental Health Payments (assists counties in providing an array of mental health treatment and rehabilitative services) - $90 million
• Department of Alcohol and Drug Abuse Payments (assists counties in providing prevention, treatment, and recovery services) - $127 million
• Small Business Vendors - $424 million
• Personal Income Tax Refunds - $140 million
According to a FAQ page on the Controller's site, if you're handed one of these IOUs you'll need to hang on until Oct. 1 to cash it unless you bank at one of the few institutions honoring them. Or you can open a bank account at one that does. Bank of America and a few other institutions say they'll honor them through July 10 only.
And here's the kicker -- even if the legislature returns and miraculously agrees on a budget to start state coffers flowing again, you're still stuck waiting until Oct. 1 to cash that check.
If it's any consolation, you'll be paid 3.75 percent interest, adding even further to the state's deficit.
Repercussions from the late-night refusal by Senate Republicans to pass stopgap measures already approved by the Assembly added $7 billion to the deficit, according to Assembly member Noreen Evans. Our governor "actively recruited" legislators to vote the measure down, Evans wrote.
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