State IOU's Could Start Thursday

July 1, 2009 12:00:00 AM PDT
IOU's that could start going out Thursday aren't cashable for Californians that receive them until October. Many small businesses who are vendors for the state say they can't afford to have the bills pile up for that long. For students who receive cal grants, they're now unsure how to pay for college.

Erick Puleo-Coats would get a double whammy with an IOU. He's depended on a cal-grant to pay for school and other money to help pay for his disabled services. "I planned on using it on books, obviously regular tuition, maybe a little help with some housing. Unfortunately, they'll give you a sad story and a great smile, but they will not take an IOU."

Counties across the state would also receive IOU's. For many without a rainy day fund, welfare services would have to end.

The state budget crisis could lead to more cuts for the California State University System which includes Fresno State. Chancellor Charles Reed wants faculty at all 23 C.S.U. campuses to take unpaid furloughs or two unpaid days off a month. Chancellor Reed said, "Cooperation and shared sacrifice are necessary." Because of the state's deficit, C.S.U. expects its budget to be slashed by 13 percent for 2009-2010

Fresno County workers are also dealing with furloughs. Starting Wednesday, 4,700 county employees will take part in a mandatory work furlough program. The county is trying to reduce its projected $30 million dollar budget deficit.

The furloughs would reduce that amount by $5.3 million dollars. Over 3,000 county employees are under union contracts that protects them from the furloughs.

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