State Controller John Chiang has announced that he will be forced to issue IOUs – starting a week from now if the Governor and State legislature don't agree on a budget. IOUs would be issued to local governments for social services, to residents and businesses for tax refunds, to private contractors, state vendors, and others. A Democratic plan to begin closing California's $24 billion budget deficit failed Wednesday, and legislative leaders said they will have lawmakers work through the weekend in an attempt to avoid the cash crisis.

Evan Halper, Sacramento Bureau Chief, L.A. Times