The Checks' In The Mail...

Or maybe not if you are the local government waiting for payment. California's budget woes will sweep over the state's 58 counties this week when they get promises instead of checks for $89 million in anticipated payments for services. Will an IOU offer a sigh of relief... nope, rumor has it that normal March payments might then have to be delayed for a month if no budget agreement has been reached. Things may get a little interesting around here.

Many counties are planning to go to court as soon as that first payment is missed. San Francisco will join a lawsuit set to be filed by San Diego and Sacramento counties, arguing that state CFO must release funds that already have been appropriated by the Legislature in the state budget.

Nothing like spending money you don't have to get money that the state can't give.

I personally like the gumption of Los Angeles and Colusa counties. Tight fisted controllers hanging on to tax payments and other funds that normally go to the state, while Riverside County plans to ask the courts to allow it to close social service programs until California resumes its payments. Interesting to see how this will play out. Think Los Gatos is insulated from the affect? Think again....