This Warrants Reading

By Carol Painter

We all know California is going through a rough period budget-wise right now. As you may have heard, since the state is running out of money, instead of issuing checks that will bounce, the state controller’s office is issuing IOUs to pay its obligations. If you are one of the lucky people who has received one of these IOUs (officially called registered warrants), you’re probably wondering what you can do with it besides use it to paper your bathroom.

Right now, the state is promising to redeem the warrants for real money by Oct. 2, 2009 (date subject to change, of course!). The Franchise Tax Board and State Board of Equalization are accepting warrants as payment for tax liabilities. Some banks will accept warrants, but check with your bank before you try depositing a warrant into your account. For more information and updates on warrants, go to the CA state controller’s office website at http://www.sco.ca.gov/eo_news_institutions.html.