Residents, government agents and contractors have received IOU’s from the state of California that equal approximately 220.000 IOU’s that will not know when they will be able to redeem them until the budget is reviewed. The current deficit in the stats that was signed by Governor Arnold Schwarzenegger is $24 billion and has been slashed by $15 million dollars. The IOU’s began being mailed out July 2nd in order to preserve enough cash for the state to cover debt payments and fund education according to Controller John Chiang. The state faced a $400 million dollar shortage for the month of July and has revised it down to $3 million dollars after their June figures were calculated. Sounds like the state could use some credit counseling and debt consolidation. As an aside if you need debt help, free or non-profit credit counseling and the like then I suggest this resource.The IOU’s were mailed in place of tax refunds that were owed to residents and companies, social service agencies and state vendors and were told they could redeem them on October 2nd unless the state had the money prior to that date.

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