California, which is teetering on the brink of fiscal collapse, has printed the first batch of about 30,000 IOUs to be issued to people awaiting income tax rebates on Thursday unless Arnold Schwarzenegger, the governor, manages to strike a last-minute budget deal with the state government, reports the FT. The state is preparing to issue IOUs equivalent to a month’s funding – or $591m – for programmes that provide supplemental income to the elderly.  Reuters reports that Schwarzenegger has declared a fiscal emergency.

This entry was posted by Gwen Robinson on Thursday, July 2nd, 2009 at 4:58 and is filed under Capital markets, People. Tagged with california. Edit this entry.