C-O-N-T-R-O-L-L-E-R Spells “Relief”: No IOUs for September
State Controller John Chiang announced today that he would not have to resort to issuing IOUs during the month of September. Cash receipts for August were above the Governor’s May Revision estimates by 3.9% (about $260 million), while disbursements were down by $1.2 billion. Counties should note that accelerated deferrals of payments to counties and schools have significantly assisted in providing the cash cushion necessary to avoid the issuance of IOUs.
While the state’s cash situation appears to be manageable for the month, each passing week without a state budget places significant stress on local cash flows, as payments are delayed and deferred, but services must continue to be provided. CSAC will continue to closely monitor the state’s cash situation and inform counties of the latest information.
For additional information, take a look at the State Controller’s Office press release.