|  I've written before that California will run out of money in February. The state has decided to start issuing IOUs in lieu of cash payments beginning on 1 February 2009.
There's a list of who gets IOUs first, and then in what order. It was sent to the agency heads yesterday. The LA Times has identified the following on the top of the list: State lawmakers. And yes, that does seem fair. Ah-nold won't be affected as he earns $1 per year. Also near the top: tax refunds, payments to doctors, and student grants. In addition, warrants (IOUs with interest) would be given to state vendors. I can't find a copy of the list itself, but here is a copy of the Controller's letter. Of note: Last Friday, the Governor ordered mass layoffs and unpaid furloughs starting in February for nearly 250,000 state public servants, including nursing home inspectors, peace officers, and auditors charged with identifying fraud, waste, and abuse.
As best as I can figure, order of magnitude, California has close to 400,000 state workers total. So, a quarter of a million is not only a lot of people, it's a huge percentage of the workers, in a state with a low number of employees to population. (Math after the jump.) The University of California believes their loss in state funds could be over $115 million. They have issued their plans to deal with the budget shortfall. The next time someone tries to tell you we don't need a stimulus plan, link them here. It's worse in California than other states, but only in magnitude, and because of its size. In a related story, South Carolina runs out of money for unemployment benefits at the end of the day today, unless Governor Mark Sanford (R) applies for Federal aid, which he says he won't do. Currentlly, South Carolina has the third highest unemployment rate in the country, and its projected to hit 14% next year. |
