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3HOURLADY Posts: 1,642
7/2/09 7:35 P

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I have lived in California all my life, and I remember about 20 years ago the same thing happened here, state workers didn't get paid, but got IOU's for their salary. It created a lot of hardships, and one family I knew that was employed by the state ended up putting everything on credit cards to survive, but then had to go into bankruptcy because they couldn't afford to cover the credit cards even after they got paid two months late.

The politicians up in Sacramento are afraid to approve a budget that might cut back services in their district, which would anger their voters, so they won't approve a budget, and it drags on and on until the fiscal year ends in July. Then we don't have a budget, the state issues IOU's and it's a big mess. You would think they would learn from past mistakes, but no, they keep playing this game. Right now the state parks are closed until further notice.

Then with all the unemployed people who lose their medical insurance, now the hospitals are cutting services because they can't afford to absorb the unpaid medical care they are mandated to supply by law. It's a real domino effect, and as people lose their jobs they can't afford to do things, like eat out, or buy cars, or buy new clothes and appliances, so the restaurants, car dealerships, and department stores close, creating more and more unemployment. Nevada is hurting now because people can't afford to go to Las Vegas. The squeeze is on everywhere.

LENORE1971's Photo LENORE1971 Posts: 101
7/2/09 5:53 P

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i heard on the news this morning that the state of california is giving out iou's to their vendors because the state has no money. how are these vendors going to pay their bills with these iou's? this recession is getting bad but a state like california can get away with giving out iou's. will the mortgage company, electric company, gas company, telephone company & the supermarket take an iou from me?

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