California set to issue IOUs

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July 1, 2009

California's new fiscal year begins today, and the state Senate has failed to reach a revised budget agreement to keep from issuing IOUs for its bills. Facing a $24 billion deficit, lawmakers were unsuccessful in approving $3.3 billion in budget cuts that would have temporarily averted the use of IOUs. State controller John Chiang is set to begin using the IOUs on Thursday, which could damage the state's credit rating. However, lawmakers still can avoid giving out the IOUs if they reach a budget deal before Thursday. Larry Mantle gets an update on the developments. Post your thoughts here.

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AirTalk On The Road

Afghanistan: The Way Forward

More American troops and fewer predator drones? Should the Taliban have a stake in governing the country? And who should intervene in a flourishing opium trade? AirTalk goes on the road to stage our own Afghan summit and you're invited.

The event takes place at the Autry National Center, November 11 at 7pm. RSVP to AirTalk@kpcc.org.

Julie Small, KPCC's State Capital Reporter

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