Hold off on the IOUs

Enough tax revenues rolled into Sacramento last month to stave off the need to issue "individual registered warrants," otherwise known as IOUs. August receipts were almost 4 percent higher than expected and disbursements were lower than expected. State Controller John Chiang had been warning about the need for IOUs in early September, but the extra cash should keep California going until next month. From Chiang:

"For the time being, Californians will be spared the pain and expense of a second round of IOUs," said Controller Chiang. "But the budget gridlock continues to harm thousands of Californians while hampering our economic recovery. The Governor and Legislature should not view this short reprieve as an invitation to break the budget deadlock record."

These numbers would seem to invite both sides of the budget impasse to take their sweet time in arriving at a compromise. With the governor leaving today on a week-long trade mission, there's obviously no sense of urgency. Meantime, the unpaid furlough days for state workers continue. Here's the report.