Arizona – the New California?

Following the lead from our neighbors to the west, cash-strapped Arizona might do that California IOU thing.

State and university employees could wind up with IOUs in their pay envelopes instead of checks in February if the planned sale of state buildings hits a snag, state Treasurer Dean Martin warned Monday.

And that could leave workers with a piece of paper that won’t help them buy food for their families, pay the mortgage or heat their homes.

Martin told legislators that by the end of January the state will have borrowed about $1.1 billion to pay its bills. The total amount Martin has available, both internally and from Bank of America, is $1.2 billion.

“Should that not happen, should there be a hiccup, a sneeze, something, anything gets lost in the mail, we will not be able to make the February school payment,” Martin said. “There’s just not enough cash. The credit cards are maxed out, you’re at your limit.”

That leaves him only one legal option for paying those to whom the state owes money: IOUs.

“They’ll get a note saying, ‘We’ll give you the money on this date,’ up to 90 days” in the future.

Whatiya think, when it’s time to pay my taxes next April 15th, can I just send in an IOU?  Or my mortgage payment? Or my property taxes?  As always, one set of rules for politicians, another set of rules for you and me.

via eastvalleytribune.com.


Comments

  1. I was under the impression that there were plans to reduce government spending… what happened to that?

    http://www.ospb.state.az.us/BudgetReports.asp

  2. Veritas Vincit says

    Here’s the question: Do the UofA and ASU faculty and professors want a 15% cut in salaries or IOUs come January 31, 2010?

    What about the greedy bastards with First Things First who are sitting on $450,000,000 of funding looking for a way to spend it?

    You read that right… that’s a voter mandated agency collecting the tax from every addicted smoker who buys a pack in Arizona.

    Will *First Things First* (who by the way hasn’t done a lick of its stated mission since its creation by the voters in 2006) won’t budge on its surplus $450,000,000

    That’s a bit of cash Dean

Leave a Reply