In good news for local businesses working for the California state government, State Controller John Chiang publicly announced that the IOU program will end on September 4th.  This is approximately one month prior to earlier estimations.  Chiang has received a wave of public support for this decision and credits the action to a slew of stress tests performed on the new State budget and cash flow analysis.

“The State of California owes a debt of gratitude to the thousands of individuals and businesses that were forced to bear the brunt of the State’s chronic fiscal mismanagement,” Chiang said. “Along with short-term loans that are routinely obtained in the fall, this spending plan should provide sufficient cash to meet all of California’s payment obligations through the fiscal year.”

For anyone not familiar with the situation, Chiang started the state IOU program last month during the budget shortfall.  The companies sent these IOUs (also known as registered warrants) have been vigorously fighting for the program to be brought to a conclusion due to the cash flow issues the IOU program was causing their own businesses.

Tags: california, IOU program, John Chiang, registered warrants

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