http://abclocal.go.com/kgo/story?section=news/politics&id=6586660
CA may issue IOUs for tax refunds
It is Day 61 of the state's budget stalemate and the state will run out of cash next month. It is at the point where the Controller will have to issue IOUs to pay the bills, including state tax refunds.
"An IOU is a registered warrant issued on behalf of the state's treasury that lets the individual receiving the IOU know that they will receive their funds at a later date," explained Jacob Roper with the State Controller's Office.
When asked, "How much later?" Roper replied, "We don't know."
State lawmakers just came back from a long holiday break to continue budget negotiations. Republicans still do not want to raise taxes and Democrats do not want deeper cuts to social programs.
Both, though, agree IOUs are a terrible option.
The state has issued them only once before since the Great Depression.
"It's a horrible thing. It is morally irresponsible for us not have an agreement," said Budget Chairwoman Noreen Evans