Cash-strapped California has issued billions of dollars in IOU’s since July, and today the state will start making good on them.
Over the past couple of months, California has issued about 450,000 IOU’s. They went to vendors who do business with the state and individuals expecting tax refunds, more than $2.5 billion worth. Some people were able to cash them in at banks – but Tom Dresslar with the State Treasurer’s office says more than 300,000 have yet to be redeemed. He’s hoping they don’t all show up at once at his office to redeem them, but they’re ready for big crowds:
“Hopefully folks will not be standing in line for a long period of time," said Dresslar. "That’s why we’re having our employees work the line so that they can gather up the IOU’s while the people are in line.”
IOU’s can be redeemed at the Treasurer’s office in person or by mail. They can also be cashed in at many banks. If all IOU’s are redeemed, the Controller’s office says California will pay out nearly $10 million in interest.
