(KFWB) 4.22.03, 2:55a -- California could completely run out of money soon.
Back from the holiday break, state lawmakers have a tall order as they are charged with coming up with a fiscal budget or the state could technically go completely broke.
In fact, financial conditions are such that the state controller could begin the budget process by issuing 'IOU's' to vendors doing business with the state.That notion of IOU's is not sitting too well with LA County Supervisor Zev Yaroslavsky who told KFWB that there is no existing budget and that issuing deferred payment notices to vendors is equivalent to a "handshake with a pauper."
"Where's the light at the end of the tunnel and how will we redeem these IOU's?" Yaroslavsky said, adding that the controller's possible contingency plan is irresponsible.
Other critics call the idea a "job killer" and say it's ridiculous to essentially tell vendors 'We'll pay you later.'
Vital services in the state that could be affected by the crisis include hospitals and jails as well as state food Inspection and prosecutorial offices.
Four months of wrangling have produced an impasse between Democrats and Republicans in the State Assembly.
Meanwhile, as the state's fiscal crisis grows worse, Californians' confidence in state leaders wanes, a new Field Poll shows.
The Field Poll released Tuesday found the majority of Californians are skeptical about whether Gov. Gray Davis or the Legislature will do what's needed to fix the problem.
By a ratio of nearly 2-to-1, poll participants also said higher taxes will be part of a solution to fill a budget gap that could hit $34.6 billion. Sixty-one percent of Californians -- including 54 percent of Republicans -- believe taxes will have to be raised. Republic lawmakers, however, have said they will not vote for a budget plan that includes tax hikes.
