Controller Chiang Provides Cash Outlook Analysis to Governor and Legislators
...Urges Swift Action

On January 22, State Controller John Chiang provided a new cash outlook analysis to California's Governor and State Legislators.

"While our current cash condition is marginally better than it was one year ago, it is still precarious," Chiang wrote. "I respectfully urge you to swiftly address the State’s projected budget and cash shortfalls for the remainder of the current fiscal year and the next in order to protect California’s economic recovery, continue the financing of public works projects, and prevent Californians hurt by the recession from experiencing even greater financial hardship."

Read the full text of the letter.

For more information, please see our California Fiscal Issues and Information Page

Controller Chiang and Treasurer Send Letters to Holders of Uncashed IOUs

On Friday, January 15, State Controller John Chiang and Treasurer Bill Lockyer will begin mailing letters to those who have not cashed their Registered Warrants (or IOUs) from last summer’s cash crisis.

More than 89,000 letters will be issued reminding individuals and businesses to redeem an estimated $50 million worth of IOUs.

Without budget solutions from the Governor and Legislature, the State Controller was forced to issue IOUs to many State payees last July to prevent a $2.8 billion cash shortage. IOUs began printing July 2, and ended September 3 of last year. The State Treasurer began redeeming the IOUs September 4.

Each IOU accrued interest through September 3, 2009, but holders do not earn interest past that date. The letter includes redemption instructions and contact information for any IOU holders who have questions about the redemption process.

Registered warrant holders can redeem their IOUs by mailing them to 915 Capitol Mall, Attention Registered Warrant Desk, Sacramento, CA 95814.

IOU holders can also contact their financial institution to see if it will honor the Registered Warrant, and if any charges apply.

For additional information, and a sample copy of the letter to uncashed IOU holders, please see our California Fiscal Issues and Information Page.

Controller Chiang Releases December Cash Report

Please see our news release.

Registered Warrants Updates and Information

Are you still holding a registered warrant (IOU)?

State of California registered warrants (IOUs) continue to be redeemed. If you want to receive interest that has been earned on the IOU, you can present the warrant to the State Treasurer's Office at 915 Capitol Mall, Sacramento, CA. You may also mail it to the Treasurer's Office at Attention: Registered Warrant Desk, State Treasurer's Office, 915 Capitol Mall, Sacramento, CA 95814.

You also can check with your bank or credit union to determine its policy for cashing IOUs and paying interest.

The State issued 450,000 IOUs worth $2.6 billion between July 2 and Sept. 4, when the IOUs matured. Please note that IOUs stopped accruing interest after Sept. 4.

For more information about redeeming an IOU, please call the State Treasurer’s Office at 1-888-864-2762 or visit them online at www.treasurer.ca.gov.

Information on which financial institutions are accepting IOUs can be found on the State Controller's Registered Warrants Web pages and the State Treasurer's Web site.

 Please visit our Registered Warrants Interest Calculator Page for a rough estimate of interest to be paid on your IOUs upon redemption

 For additional information on California fiscal issues, please see:

• The Controller's Monthly Cash Reports and Summary Newsletters
• The Controller's California Fiscal Issues and Information Page