Yes California has a Republican Governor but the Legislators are overwhelming Democrats. Not your every day Democrats but West Coast Liberal Democrats.

Ban news for ALL vendors doing business with the State. I wonder if my next check from my company will be an IOU and if Safeway, Chevron and a host of other companies in California will accept the IOU's. Yeah...Right.


California, the world’s eighth largest economy, may pay vendors with IOUs for only the second time since the Great Depression, State Finance Director Mike Genest said. In a letter to legislative leaders Dec. 2, Genest said the state “will begin delaying payments or paying in registered warrants in March” unless an $11.2 billion deficit is closed or reduced. California, which approved its budget less than three months ago, may run out of cash by March, state officials say. Governor Arnold chwarzenegger warned that he may issue the warrants, which are a promise to pay with interest, to suppliers and contractors as the seizure in credit markets may make it too costly to borrow.

http://www.bloomberg.com/apps/news?p...d=a2TUhalNFDds