California issues $4 billion IOU to state education system

[marmar]

California delays $4 bln education system payment

SAN FRANCISCO (MarketWatch) -- California delayed a $4 billion payment to its Department of Education system on Friday as the state continues to struggle with a budget shortfall of more than $25 billion. The payment, known as the Principal Apportionment, is the largest annual payment of state funds to California's public education system. The money goes to schools to pay for a wide range of things including salaries. The payment was scheduled for today, which is the last payment for the 2008-09 fiscal year, but will instead be issued on July 30, State Superintendent of Public Instruction Jack O'Connell and State Controller John Chiang said Friday in a statement. California has also issued 91,000 IOUs totalling $354 million as of late Wednesday.


http://www.marketwatch.com/story/california-delays-4-bln-education-system-payment

[GreenPartyVoter]

1. How are the schools going to function without $$?

[MNDemNY]

2. No schools. Educate your own damn kids.

[napi21]

3. It depends on how low their operating capital is. If they're going to receive the payment

on 7/30, that's 3 weeks. Salaries will be paid first, and I'm fairly sure they can push off most other vendors for a couple of weeks.

[JonQ]

4. What is $4 billion in IOUs

worth in real money?

[Deja Q]

5. Free currency for heating?

Pity it's California...