KDRV Staff & Associated Press
 
July 2, 2009
 
SACRAMENTO -- The state of California is preparing to issue IOUs after the legislature's failure to bridge a $26.3 billion shortfall.
 
Siskiyou County leaders say so far, one of the county's two banks have decided to accept the IOUs.
Union Bank will only do so until July 10th. Premier West Bank is still deciding whether it will accept them. County officials say that may only buy the county an extra 30 days before it is forced to cut state funded programs in the area.
 
Meanwhile, Gov. Arnold Schwarzenegger says California's Democratic-led Legislature is putting union interests over taxpayers' well-being.
 
The governor made cutting remarks in Los Angeles on Thursday as the state prepared to issue its first IOUs instead of payments since 1992.
 
Schwarzenegger says Democrats have resisted reforms he says must be part of solving the state's shortfall. He says the state must cut out waste.
 
The governor recently proposed changes to cut state employees' pensions and adopt fraud-prevention measures for in-home caregivers. Democrats don't want policy changes to be part of budget negotiations.
 
Schwarzenegger says the Legislature's failure to pass a balanced budget revision sent a message that they expect Californians to make sacrifices but won't do the same.