State-funded programs grapple with California IOUs
With the state budget crisis still unresolved, anyone expecting money from Sacramento is a day closer to getting an IOU. The state controller says he’ll start issuing them Thursday. KPCC’s Susan Valot reports.
Susan Valot: At Providence Speech and Hearing Center in Orange, almost two-thirds of the patients – mostly children – rely on state funding for hearing and speech care. The center’s CEO, Linda Smith, says instead of getting a state payment at the start of the week, they got notice that California will issue IOUs. She says the center will have to use credit to cover its bills. But Smith wonders how long she can do that.
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Linda Smith: That’s something that we’ve actually been discussing. Do we have to stop taking these patients? It’s part of our mission to serve all patients regardless of financial resources. But there comes a point where, you know, we can’t fund what the state is doing. And then they continue to cut the payments, as well. So it’s definitely a challenge.
Valot: Banks haven’t decided whether they’ll accept the IOUs. They might wait until Thursday when the state sets the interest rate for the IOUs. Linda Smith says Providence Speech and Hearing Center is lucky because Cal Optima, which runs Medi-Cal in Orange County, plans to keep paying the bills.
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4 months, 1 week ago
Jct: There’s nothing wrong with small denomination California State IOUs if I or anyone else can pay their taxes with them. When Argentina’s government workers were faced with cuts, their unions talked 6 state governments into paying them with small-denomination state bonds which could be used to pay for state services and taxes and which everyone accepted as useful currency. Best of all, when the local currency is pegged to the Time Standard of Money (how many dollars per unskilled hour child labor) Hours earned locally can be intertraded with other timebanks globally! In 1999, I paid for 39/40 nights in Europe with an IOU for a night back in Canada worth 5 Hours.
U.N. Millennium Declaration UNILETS Resolution C6 to governments is for a time-based currency to restructure the global financial architecture. See my banking systems engineering analysis at http://youtube.com/kingofthepaupers
Too bad California State IOUs won’t be accepted in payment for state taxes and services like state bonds were in Argentina. Too bad California State IOUs will be denominated too big to use as local currency. Too bad Argentina people were smart enough to avoid the tent-cities catastrophe and California people are too stupid to follow their example.