Calif. lawmakers remain deadlocked over solving budget crisis; IOUs expected next week

Calif. IOUs loom as lawmakers remain at impasse

SACRAMENTO, Calif. — California lawmakers remain at an impasse over solving the state’s $24.3 billion deficit as the state controller prepares to hand out roughly $3 billion in IOUs.

A Friday morning vote on a portion of the Democratic budget plan fell short of the necessary two-thirds support in the Assembly. Lawmakers were planning to work through the weekend.

State Controller John Chiang says without a budget revision, he will have to start issuing IOUs as soon as Thursday. The state will not have enough cash to meet all of its payment obligations as the new fiscal year begins.

Among those who would not get paid until after October are students expecting college fee assistance, low-income seniors and the disabled, and vendors that provide an array of services.