Calif. wants to pay off its IOUs

SACRAMENTO, Calif. —Talk about debt forgiveness.

According to the two state offices that manage California's checkbook, some 85,600 people and businesses have yet to redeem IOUs worth more than $45 million — a lingering reminder of last summer's budget woes, when the state found itself too broke to pay its bills and issued billions in scrip.

And if those folks don't redeem their IOUs by September, a year after the Treasurer's Office first began cashing them, they may not get their money at all.

Starting today, state Controller John Chiang and Treasurer Bill Lockyer will send a letter to each of those remaining IOU holders, reminding them that California really would like to make good on its debts.