Next Wednesday we start a fiscal year with a massively unbalanced spending plan and a cash shortfall not seen since the Great Depression. The State’s $2.8 billion cash shortage in July grows to $6.5 billion in September, and after that we see a double-digit freefall. Unfortunately, the State’s inability to balance its checkbook will now mean short-changing taxpayers, local governments and small businesses.
John Chiang, California State Controller.

In 1992, Gov. Pete Wilson, a Republican, issued the i.o.u.’s to state workers; the workers immediately brought a lawsuit, contending that the i.o.u.’s violated the federal Fair Labor Standards Act. A federal judge approved a $558 million settlement, and some workers received additional vacation time.