California plans to stop issuing IOUs next month. KPCC's Cheryl Devall says that's the word from the state controller.
Since last month, the state has issued more than 300,000 IOUs to taxpayers, local governments, and small businesses. Controller John Chiang’s announced he'll be able to stop that practice on September 4th, thanks to the budget lawmakers recently enacted.
The deal’s not final yet. Controller Chiang says it depends on whether he can borrow enough money to pay off close to $2 billion worth of IOUs his office has already issued. A state board also must approve the plan at a meeting later this month.
If both those "ifs" pan out, California would begin paying back the IOUs on September 4th – almost a month earlier than officials had expected.