State may start issuing I.O.U's

December 5, 2008 5:49:43 PM PST
In Sacramento, the state budget hole is getting so deep California may be forced to issue I.O.U.'s instead of paying its bills.

The state finance director says I.O.U.'s could begin going out by March, unless an $11 billion deficit is closed.

Landscapers, carpet cleaners, construction firms and food service companies are among the vendors who would be the first I.O.U. recipients.