California Begins Printing IOUs

(NEWSER) - California’s finances are so dire that the state controller says he’s going to have to start doling out IOUs to creditors soon, reports the Los Angeles Times. Likening the situation to the Great Depression, John Chiang says he’ll have to issue IOUs to social-service agencies, private contractors, vendors, and others starting July 2 unless Gov. Schwarzenegger and state lawmakers close a $24 billion deficit. More»

State controller refuses to cut smaller checks

(NEWSER) - Arnold Schwarzenegger upped the ante in his budget standoff with the state legislature yesterday, ordering almost all state workers' pay cut to the federal minimum wage—$7.25 per hour—effective immediately. The State Controller, Democrat John Chiang, says he won’t obey that order, the LA Times reports, but the Department of Personnel Administration says he doesn’t have a choice. The last time Chiang refused to cut worker benefits, in 2008, Schwarzenegger took him to court and won. More»

Calif. rallies draw thousands; violence mars Wis. protest

(NEWSER) - Thousands of students, from university down to elementary-school level, are rallying today across the US to protest the ever-more-dismal state of education funding. California demonstrators, who also included faculty and parents, have been most visible, and mainly peaceful, though a car windshield was smashed during the gathering at the University of California-Santa Cruz, authorities tell the San Francisco Chronicle , and punches were thrown at the University of Wisconsin-Milwaukee, the AP adds. More»

Despite one ruinous turn as governor, Jerry Brown is front-runner

(NEWSER) - California is a financial mess, hamstrung by some late-1970s leftovers: some ill-considered “low-impact liberalism” and a ballot measure that makes raising taxes nearly impossible. Both came during the governorship of Democrat Jerry Brown, he of the motto “Maybe by avoiding doing things you accomplish quite a lot”—and the leading candidate to succeed Arnold Schwarzenegger in next year’s election. More»

Full-scale regulation and taxation on the table in Calif.

(NEWSER) - The recession has given marijuana-legalization advocates an unexpected boost, Time reports, as cash-strapped states are tempted by possible revenues from pot taxes. With an existing medical-marijuana market and cuts to education and health services pending due to a huge budget deficit, California advocates are preparing both legislation and ballot initiatives to regulate and tax all marijuana sales for adults 21 and over. More»