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Who will California pay in cash, and who will be getting IOUs?

July 2, 2009 - 5:17 pm

Reuters blogger Felix Salmon pieced together a terrific table on who will be getting IOUs from the state starting today, and who will be getting cash. The links at the top of the table point to supporting information from the state controller’s website.

People who get California IOUs People California pays in cash
Grants to aged, blind or disabled persons University of California
People needing temporary assistance for basic family needs Public Employees’ Retirement System
People in drug prevention, treatment, and recovery services Legislators, legislative employees, and appointees
Persons with developmental disablities Judges
People in mental health treatment Department of Corrections
Small Business Vendors Health Care Services payments to Institutional Providers

Note that the legislature is still getting paid during all this, and so is the governor’s staff, which might seem odd since the budget impasses is their fault. However, they are state employees, and all state employees must get paid in cash, as mandated by the U.S. Fair Labor Standards Act. In the 1992 budget crisis, the state tried to pay state workers in IOUs. The workers sued, and won two landmark cases, Parr v. State of California and Biggs v. Wilson (1991).

One Comment leave one →
  1. Alan Silva permalink
    July 2, 2009 - 11:41 pm 11:41 pm

    I wonder what people will do when they need temporary assistance for basic family needs, require the help of drug prevention, treatment, and recovery services, have developmental disablities, and require mental health treatment, yet fail to receive help for these things from the State.

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