Budget stalemate taking a toll

Just because Controller John Chiang hasn't been forced to issue IOUs (so far) doesn't mean vendors doing business with the state of California are receiving all that is owed to them. In fact, thousands of businesses haven't gotten paid since July. From the Sacramento Bee:

Many of state government's business partners are used to the budget dance each summer: no budget, no payments. But as state leaders push the stalemate into record territory, contractors and care providers wonder how much longer they can last. "I don't even let my mind go there," said Caroline Clausen, who borrowed more than $10,000 against her retirement account to keep Toddler Tech Preschool and Daycare open in Bakersfield. "I just try to take care of the day. I try not to give myself an ulcer."

There's no telling when this thing will be settled. The governor once joked about the impasse dragging past his final day in office, but at the rate state lawmakers are going, that's not entirely out of the question. There are no serious negotiations taking place, at least not any that I'm aware of.

Courts have ruled the state is not authorized to pay vendors, health clinics, community colleges and student grants, among other things, without an approved budget. California will issue reimbursements once the budget is signed, but only qualified vendors receive interest. According to Controller John Chiang's office, the state did not pay an estimated $3.3 billion in bills in July and August, nearly 10 percent of all state costs. The state is projected to miss another $3.1 billion in payments this month alone.