California is running out of money and is about to start issuing IOU's to pay it's bills. No, REALLY:
On Tuesday, as the previous fiscal year was drawing to a close, the Senate rejected three bills designed to save $5 billion, including $3.3 billion in education funding cuts that had to be enacted. Passing those bills would have given the Legislature time to work out a broader solution to the deficit and delayed the need for IOUs.Instead, the budget shortfall is set to grow even wider because of California's complicated school funding formula, meaning the state will not have enough money to pay all its bills.
State Controller John Chiang said his office is prepared to issue IOUs totaling $3.3 billion in July
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