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State Controller Says He May Start Issuing IOUs In August

State Controller John Chiang is asking Governor Schwarzenegger and lawmakers to back away from talk of waiting to enact a budget until next year.

Chiang says without a spending plan in place, he could be forced to start issuing IOUs as early as August. He says that may be needed to conserve enough cash to get the state through the fall.

The controller says a lengthy budget delay could also affect education funding as the new school year begins, and that could hurt California’s credit rating.