Sanders Weighs In On IOUs
Thursday, June 25, 2009
San Diego Mayor Jerry Sanders says it will be hard on the entire state if California has to start issuing IOUs instead of state checks.
SAN DIEGO San Diego Mayor Jerry Sanders says it will be hard on the entire state if California has to start issuing IOUs instead of state checks.
The state controller says California may need to issue IOUs if lawmakers don’t pass a budget by Wednesday. For instance, instead of getting a check for property tax revenues, the city would get an IOU that matures in October. Sanders says the promissory notes could cause a lot of trouble within California.
“I think that state IOUs at this point are going to be pretty hard to use. I think it will be very tough on employees. It will be very tough on social service programs. It will be very tough on community clinics,” he says.
Sanders says he’s told lawmakers he’s willing to work with them if the state wants to borrow property tax revenues. But he says San Diego will join with other cities in filing a lawsuit if California tries to take local gas taxes because those don’t have to be repaid.
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