California may have to issue IOUs because of the $24 billion deficit. The IOUs may be issued as early as July 2. Because of the state's financial difficulties, Controller John Chiang warned that he would have to start issuing warrants instead of money as both houses started debating solutions to the budget problem. If California IOUs start to replace actual cash, who would suffer?

Washington state's Clark County budget and finance staff are preparing a formal proposal to realign the budget through 2010 with a combination of budget cuts and revenue adjustments, based on preliminary direction from the Board of Clark County Commissioners.

President Obama has proposed raising taxes on the wealthiest Americans in order to pay for health care reform. This reform will cost over 600 billion dollars. Many opponents of this move see it is another foolish bit of government spending.

Inaccurate budgeting and poor fiscal practices led to a deficit of $3.2 million at the East Moriches Union Free School District and overspending of $746,326 at the Southold Union Free School District, according to audits released Tuesday in a press release from DiNapoli.