California is running out of cash and paying bills with IOU's

Fresno, CA Clint McCoy, French Fry Xpress said, "That's a long time for a small business to keep putting cash out and not getting any in."

And the frustration today did not end there, the closed doors at the Department of Motor Vehicles, an unwelcome surprise.

This DMV is one of hundreds of State Offices closed three Fridays every month as California sinks under a staggering budget shortfall.

Arnold Schwarzenegger, California Governor said, "It is ludicrous to promise the people don't worry we're going to go and keep paying for that when you don't have the money"

Governor Arnold Schwarzenegger may add a fourth furlough day resulting in a pay cut of almost 20 percent for state workers.

We found DMV worker John Drumm spending his furlough day stocking up at a local food bank.

The deep recession has dealt a body blow to California's economy, one of the biggest in the world. And a political stalemate in the state's legislature isn't helping. Brad Delong, Economics Professor, U.C. Berkeley said, "We haven't been able to decide//whether we want to be a state that has a very large government and high tax rates like Connecticut or a state that has next to no government

and next to no taxes like Mississippi." And while politicians posture California citizens are left holding the back.

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