California is in a bit of a financial bind. Seems like the Senate cannot get a budget going and resorted to using IOUs to pay off some of its debt. Only problem is banks after Friday (7/10/09) may stop accepting those IOUs.
As California legislators haggle over how to close a $26.3 billion budget deficit, the state is expected to send out $3.3 billion in IOUs this month to private contractors, state vendors, people getting tax refunds and local governments for social services.
JPMorgan Chase and Co., Bank of America Corp., Wells Fargo & Co. and Citigroup Inc. and some regional banks, are trying to pressure lawmakers to end the impasse by warning that, after Friday, they won't accept IOUs issued by the state. The move would leave many businesses and families with pieces of paper and fewer options for getting their money immediately.A solution that would help California's budget problem came from a pro-marijuana group: legalize and tax the stuff!
"We're marijuana consumers," says Nadene Herndon of Fair Oaks, who says she began using marijuana after suffering multiple strokes three years ago. "Instead of being treated like criminals for using a substance safer than alcohol, we want to pay our fair share."
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