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?

In a bid to show frustration with Legislature's lack of progress in reaching an agreement on the budget, the Governor of California Arnold Schwarzenegger said today that he will sign no more bills of any kind until the Legislature completes work on a state budget.

Budget delays make the governor of California Arnold Schwarzenegger to cut thousands of jobs, make hiring freeze and pay minimum wage to free up money to pay state's bill. California has no budget today. Schwarzenegger signed the executive order in front of cameras to make some extra cash available for the state until the budget is cut hopefully in the next few days.

The situation in California is getting interesting. Three days ago I wrote Schwarzenegger Needs To Face Reality: California Is Insolvent. In a better late than never scenario, Schwarzenegger is getting tough. The LA Times is reporting Schwarzenegger plans to slash state workers' pay till budget passes.

The Armenian government approved on Tuesday its draft budget for next year which calls for a more than 40 percent surge in state expenditures and revenues.

Secretary of State Terri Lynn Land today advised Michigan residents concerned about a possible Oct. 1 state government shutdown of the options for renewing driver's licenses or plate tabs early.

Granholm to Protect Public Health, Safety in Partial Shutdown of Michigan State Government.