California Begins Printing IOUs

Thousands of Californians still waiting for their state tax returns will open their mail to find an IOU instead of a check. Unable to close a gargantuan budget deficit, the state began printing a $53 million batch of IOUs this afternoon, the Los Angeles Times reports. Some banks have agreed to accept them, at least for the time being.

"We are reluctant to take this step, but are doing so to help our customers who are not at fault and with the expectation that the Legislature and governor will complete the budget within days," said a Wells Fargo statement.
(More California stories.)