As deficit grows, Calif. prepares to issue IOUs (AP)

[newsguy]

<p><a href="http://us.rd.yahoo.com/dailynews/rss/topstories/*http://news.yahoo.com/s/ap/20090702/ap_on_bi_ge/us_california_budget"><img src="http://d.yimg.com/a/p/ap/20090701/capt.b9c12ea4f890444d90477de946ee3771.california_budget_sc110.jpg?x=88&y=130&q=85&sig=KJJfBsHvNDUjYHhryLDKCA--" align="left" height="130" width="88" alt="State employee Erika Gallo joined hundreds of state employees in protesting against additional pay cuts and furloughs durng demonstration at the Capitol in Sacramento, Calif., Wednesday, July 1, 2009.(AP Photo/Rich Pedroncelli)" border="0" /></a>AP - California's controller will start paying many of the state's bills with IOUs as soon as Thursday after lawmakers failed to close the state's worsening budget deficit, adding a new measure of indignity to a state sinking deeper into dysfunction.</p><br clear="all"/>

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