State of California preparing for IOU's (Fresno: lease, bad credit, high school)

[miss cali]

If the fiscal budget is not passed, we will likely be issued IOU's for our next paycheck. I doubt my landlord will take an IOU.

Here is a news video of the latest. According to the news, we have not had IOU's since the Great Depression. Many programs may need to be cut such as Healthy Start, Calworks, etc. Please see the video.


http://cosmos.bcst.yahoo.com/up/player/popup/index.php?cl=14149643

[Ultrarunner]

A friend rents office space to the State and has already dealt with IOU's on several occasions...

He upped the rent at renewal because of it...

[miss cali]

What a lucky friend you have. Good for him. Unfortunately, I dont think many of us will have that luxery.

Here is another video and the controversy between Dems and Republicans.

http://cosmos.bcst.yahoo.com/up/player/popup/index.php?cl=14146274

[majoun]

Originally Posted by miss cali

If the fiscal budget is not passed, we will likely be issued IOU's for our next paycheck. I doubt my landlord will take an IOU.

Here is a news video of the latest. According to the news, we have not had IOU's since the Great Depression.

Has Pete Wilson already been forgotten? Although that early '90s budget crisis was nowhere near as bad, and it was resolved not long after the IOUs went out.

[Ultrarunner]

Originally Posted by miss cali

What a lucky friend you have. Good for him. Unfortunately, I dont think many of us will have that luxery.

Here is another video and the controversy between Dems and Republicans.

http://cosmos.bcst.yahoo.com/up/player/popup/index.php?cl=14146274

He's very talented, self made man with only High School Education.

The building he rents to the State is a building that he built... lots more flexibility when you own the property outright.

[miss cali]

And to think that some of the state's facilities will be emptied out and their staff layed off. That bugs me that your friend raised the rent. I would not feel too secure about it. I have a feeling this is just the begining of a much larger lay off and spending cuts.

[Ultrarunner]

Originally Posted by miss cali

And to think that some of the state's facilities will be emptied out and their staff layed off. That bugs me that your friend raised the rent. I would not feel too secure about it. I have a feeling this is just the begining of a much larger lay off and spending cuts.

Could be... back when he first leased it to the State he rented it below market because renting to the State is 100% secure... right? Well not anymore.

The rent was raised several years ago because it took almost 5 months to get paid after one round of IOU's. When you have bad credit you also have limited options. Also, the State also pays in arrears... so you are already 30 days in the hole starting out.

His position was renting to the State was no longer a sure bet.

Lots of property going vacant... and with every vacant commercial property is an assessment appeal to the county. Commercial Property is valued by the Income it produces... vacant property in an area with high vacancies is proof the property value has fallen and grounds for adjustment.

Thankfully the residential 1 to 4 market is very strong right now...

I do know contractors that no longer bid on State Projects... too complicated, time consuming with no guarantee of payment upon completion...

This is not the CA that I knew growing up here...

[FresnoFacts]

Originally Posted by majoun

Has Pete Wilson already been forgotten? Although that early '90s budget crisis was nowhere near as bad, and it was resolved not long after the IOUs went out.

In 1992 it was something like $350 million in IOUs issued to state employees.

I also remember the same thing in about 1980 or 1981. Curmudgeon or someone else might remember for sure.

It seems to me the state issued daily lists of the payroll warrants that could be cashed. Banks and credit unions gave most state employees immediate access and held the warrant until the state paid it to help customers.

[Huckleberry3911948]

the deficit is equal to medical.
no medical no deficit.
illegals greatly use medical.

[EscapeCalifornia]

Originally Posted by FresnoFacts

In 1992 it was something like $350 million in IOUs issued to state employees.

I also remember the same thing in about 1980 or 1981. Curmudgeon or someone else might remember for sure.

It seems to me the state issued daily lists of the payroll warrants that could be cashed. Banks and credit unions gave most state employees immediate access and held the warrant until the state paid it to help customers.

As stretched as banks are today, I don't know if they'd do that again.