CA Lawmakers End Budget Deadlock - But IOUs Won't Die

California's leaders on the state level have finally begun to agree on the state's budget, after dipping a little too far into the red ink. California started issuing IOUs a while back as a measure to try to fight the load of debt (which they called "Registered Warrants"). Before long, banks stopped cashing them and politicians were left with their hands in the air and their crumpled-up ideas in the garbage.

True to his typical philosophy, Gov. Arnold Schwarzenegger (R) has come out saying he would like to see President Obama's healthcare plan carried out, but he is not sure how it could be payed for.

A similar story is playing out in California's congress. Billions of dollars in debt and with no clear solutions, the state was looking for a way out of trouble when last week, with a quick hurry, an agreement was reached.

The new budget, which has many members of both parties on board and has the approval of Gov. Schwarzenegger, includes many cuts to both fly-by night and famous government programs, and as the Washington Post reports, includes a plug for the leaky budget crafted from calendars and ledgers of local governments.

Many Californians are up in arms about the potential closing of up to a third of the state parks there. California has more than its share of glorious state parks, and if they were closed, their beauty could not be enjoyed by the flocks of tourists that come to California. It seems like it would be a suicidal mistake by the Californian legislature to close a large share of the tourism industry, which does happen to be a major income for the state.

California's offshore drilling may be increased to gather up some cash, too. That would be a very good idea if it goes through, as California has more registered automobiles than any other state. (1)

It seems that California's budget has some major kinks to be worked out. But it's great that the state leaders are finally beginning to get along!
And guess what? The IOU printing presses won't be stopped by the new budget either.

1-Source: US Dept. of Transportation
Image Credit: National Public Radio


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