State of California Paying Social Service Non-Profits & Consumers With IOUs

OPEN MINDS Weekly News Wire Social Services On July 2, 2009, due to a $2.8 billion cash shortage the State of California started using IOUs, technically known as registered warrants, to pay its human service contractors; SSI grants to aged, blind, or disabled persons; CalWorks temporary assistance recipients. The IOUs are being used to cover a range of the state’s obligations beyond social service, including student loans, small business vendors, and personal and corporate state income tax refunds. A customer call-center was launched to answer questions. The Securities and Exchange Commission has defined the IOUs as securities . . .