Without a Budget Deal, California Set To Issue IOUs to Counties
California counties will not receive $89 million in payments from the state on Friday under a plan by state Controller John Chiang (D) to preserve state cash, the San Francisco Chronicle reports (Wildermuth, San Francisco Chronicle, 2/10).
The state payments help fund health care, mental health and social services that counties administer (California Healthline, 2/5).
Chiang said the funding is only being delayed for a month and will be repaid in March, but a spokesperson for Chiang said that the March payments also might be delayed by a month if a state budget agreement has not been approved.
Counties Fight Back
Some counties intended to file lawsuits as soon as the state does not make the scheduled payments.
For example, San Diego and Sacramento counties plan to file a suit challenging Chiang's right to withhold payments that the Legislature already has appropriated.Â San Francisco plans to join that suit.Meanwhile, Colusa and Los Angeles counties are considering withholding transfers of other funds to the state until state payments resume (San Francisco Chronicle, 2/10). This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.