California issues I.O.U.'s -- eat that seniors!

Sheldon,

I think your title is mis leading The Chronicle (SFGATE.com) reports:
"The move will not affect many individuals who receive government assistance. Low-income people, the elderly and the disabled will receive their regular checks on schedule. Schools, state workers, Medi-Cal providers, pension funds and In-Home Supportive Services are all protected by law from receiving an IOU in lieu of a real check."

Yah for business this stinks, but the banks that have signed on for now include Bank of America, Last fall the interest rate was speculated to be as high as 5%. I'll take that!

But man you gotta check your facts better!

GIS Cowboy,

Always appreciate your comments, however, the following is from Bloomberg, quoting the state controller:

"The controller will begin issuing the IOUs tomorrow after a meeting of the State Pooled Money Investment Board, which will set the interest-rate that the state will pay on the promissory notes until they mature in October. More than $1 billion of the so-called warrants will be issued to the elderly, disabled and to welfare recipients that are due checks, according to the controller. Another $565 million will be sent to businesses that hold contracts with the state, while $159 million will be given to students."

CHECKING MY FACTS --There is no telling if Bloomberg has the info perfect, but the state controller is not returning my calls. ;-)

Sheldon,

Bloomberg may have seen this page - on the State Controllers website.

http://www.sco.ca.gov/5919.html

missing the asterix that states "*The federal Social Security Administration has notified California that it will continue to pay in full both the federal Supplemental Security Income (SSI) and the State Supplementary Payment (SSP) to aged, blind or disabled recipients
in July and August." (so the IOU's go to the Fed's?)

As far as Cal Works goes... I thought those checks were made by the Counties where they are administered? Which is why our county (LA) is so mad.

Also Grants to students don't usually go to the student but to the financial aid / accounting office at the College, wether the college forces the student to pay for fees while they hold the warrant will be interesting, UC didn't know this AM what they will do, the Cal State University system implied they will accept them.

I will be interested to see how many low income individuals ( except for tax refunds) actually receive these.

I am disappointed by the 3.75% rate.

Is it time to start averaging into a California MUNI Fund?

Cowboy -- don't need muni fund -- check out:

Serious Money: Five high-yield, safe, diversified stocks

http://www.bloggingstocks.com/2009/06/29/serious-money-five-high-yield-safe-diversifed-stocks/

On August 22, 1996, President Clinton signed into law the Personal Responsibility and Work Opportunity Reconciliation Act of 1996
Some people don't even know what they are talking about. Do your homework first! Why is Clinton being blamed for Welfare programs when he was the first President to put time limits on it and force people to get their GED and get a job or lose benefits. He also cut off drug offenders from receiving a check or food stamps. He also stopped women from getting more money every time they had another baby. He also cut illegal immigrants from receiving services like SSI and food stamps. Ok, what did either Bush do for welfare reform? There are seniors that do get money from the state of California and from the Federal government so some of their check can be issued in an IOU. The Federal Government gave the biggest Cost of living raise in years for the disabled in January and the state of California captured it.

Well news flash let the already poor people have no way to feed their children..we will be under marshall law sooner than people think. See how bad crime and murder crimes get. People will feed their children by any means deemed necessary.

More people that had jobs at one point in time that paid taxes are now on welfare. It is due to the ignorance of the people that this will become one of the most dangerous states to live in. And for the record more Non-ethnic people are on welfare than ever now.

When the dot- com industry went under..people were on unemployment....well most of that unemployment has run out . People are laid off left and right and we blame the immigrants when they have to work 10 times harder than we as citizens do and for less pay.

Let the weed smokers who wanna make is legal help get the state out of debt like they claim they can.