This is the photo of Citibank’s policy on accepting registered warrants. A registered warrant is an IOU. It can be redeemed on October 2 or earlier if the State of California finds the money.
The people who depend on the following departments where/are (don’t know if the new budget being passed last night will end this now or next week or next month, who knows) currently being impacted by IOUs:
- Student Aid Commission (includes funding for Cal Grants)—Has anyone who is going to school received any money? Because no one I know who is going to school has gotten anything and this has nothing to do with Cal Grants.
- Department of Social Services SSI/SSP grant assistance to aged, blind or disabled persons
(The federal Social Security Administration has notified California that it will
continue to pay in full both the federal Supplemental Security Income (SSI) and the
State Supplementary Payment (SSP) to aged, blind or disabled recipients
in July and August.)
- Department of Social Services
CalWorks (temporary assistance for basic family needs, including specific welfare-to-work requirements – only the State portion of Stage 1 CalWorks will receive registered warrants.)
- Department of Social Services
County Administration (payments for operating costs and salaries of county staff who administer public assistance programs)
- Department of Developmental Services Payments (funding for regional centers providing services to persons with developmental disablities)
- Department of Mental Health Payments (assists counties in providing an array of mental health treatment and rehabilitative services)
- Department of Alcohol and Drug Abuse Payments (assists counties in providing prevention, treatment, and recovery services)
- Judicial Branch (support for the operation of the trial courts)
- Personal Income Tax Refunds
- Corporate Tax Refunds
- Info from the State of Calfornia website.
Now many of you are probably thinking, “The banks are taking them, so what is the big deal?” But not all banks are taking them. Some pretty big banks are not taking them: Bank of America, Wells Fargo, Chase, and Union Bank are not accepting IOUs.
That means certain county employees as well as people who get paid through the state and provide county services are not going to be able to make rent if they can’t hustle and find a place that is accepting their check. With the paycheck to paycheck status many Californians are in this could be a disaster for some people.
The banks that are taking them are only taking them if you have an established account. If you happened to have switched banks recently (which is not that unlikely with the amount of banks that have been currently biting the dust) you could be screwed.
This was Arnold’s solutions: Take away three work days (which will continue through June 2010,) close the state offices on Fridays (also continues through 2010,) put California in it’s own mini-depression with it’s very own your check is worth nothing drama for good measure.
When is LA Magazine going to do a story on this guy, because if anyone is a failure it’s Arnold. I’m wondering why he isn’t getting the nasty press that he deserves. He has destroyed the state.
Are we living in the 1930s? Is the budget and being right and being “responsible” so important you’ll destroy the whole state over some petty bullshit, because to me this all looks like some petty bullshit.
And by bullshit I mean putting people last, the poor people last, the environment last and fighting as if those tools are the only tools available because you don’t want to raise taxes on the many rich people who live here. That to me is some petty bullshit.
This budget thing has been going on since February (the budget got approved in February and the of course there wasn’t enough money to cover what had been approved so this happened) and now people are getting IOUs instead of their money, because of mismanagement of this state by Arnold Schwarzenegger.
And he’s been the Governor of California since 2003, so it’s his fault. If you’re the manager of a company that can’t pay it’s bills and that company’s credit is destroyed owing to you not being able to figure it out, it gets to be your fault.
Our credit rating is the lowest in the country. We can’t even make fun of Mississippi.
Arnold said he would balance the budget, but this doesn’t count. I could be responsible and balance my budget too if I killed my cat (money saved on: vet, I-can-only-eat-over-priced-wetfood-and-only-the-kind-in-chunks, and just the various things furballs tend to tear up), stole money from my mother and only ate on Tuesdays and Thursdays.
Here are some of the cuts that are in this year’s budget:
• K-12 and community college education — $4.3 billion
• Higher education — $3 billion
• Medi-Cal — $1.3 billion
• State worker pay — $1.3 billion
• Corrections — $1.2 billion
• CalWorks/welfare — $528 million
• Home health aides — $226 million
• Healthy Families children’s insurance — $124 million
• Local transportation — $1 billion
• Redevelopment agencies — $1.7 billion
Numbers are not final and being updated via the LA Times website as I type this.
After the dust clears I strongly suggest you to get the info from the original source. Go to the actual budget and read it yourself.