“California state controller John Chiang warned Wednesday that if legislators and Gov. Arnold Schwarzenegger fail to come up with a budget-balancing package in the next week, he would begin paying California’s bills with IOUs on July 2. The controller’s warning came as legislators began what many on both sides of the aisle acknowledged was a rhetorical song-and-dance over closing a $24 billion deficit that stretches over the fiscal year that ends Tuesday and the one that begins Wednesday. Republicans in both houses were rejecting a Democratic bill that contained $11 billion in spending cuts — the first of a 20-bill package aimed at reducing the deficit. The Democratic plan contains new tax hikes and some accounting legerdemain along with the spending cuts.” (06/24/09)