SCO Facebook page link SCO Twitter page link SCO YouTube page link SCO Mobile site link
Welcome to the State of California

State Controller's Office Information on Registered Warrants (IOUs) Issued in 2009

Chart illustrates outlook that State's monthly cash balance low point will be positive, assuming early redemptions of IOUs and short-term cash flow borrowing

Latest Update: 2009 Registered Warrants Updates and Information

Information on the Redemption of Registered Warrants (IOUs) Issued by the State During the 2009 Cash Crisis

As of November 10, 2010, the State Treasurer’s Office is no longer redeeming Registered Warrants (IOUs) issued by the State of California during the 2009 cash crisis.

Persons still holding a Registered Warrant can contact the agency that initially issued the IOU and request that it be reissued as a regular warrant. If you do not know the name of the issuing agency, you can contact the Disbursements Bureau of the State Controller’s Office at (916) 445-7789 with the Registered Warrant number, and a Bureau employee can provide you with the name of the issuing agency and its public contact information.



Previous 2009 IOU information (maintained for archival purposes)



January 2010 Update:

Are you still holding a registered warrant (IOU) issued by the State in 2009? 

 

State of California registered warrants (IOUs) issued in 2009 continue to be redeemed. If you want to receive interest that has been earned on the IOU, you can present the warrant to the State Treasurer's Office at 915 Capitol Mall, Sacramento, CA. You may also mail it to the Treasurer's Office at Attention: Registered Warrant Desk, State Treasurer's Office, 915 Capitol Mall, Sacramento, CA 95814.

You also can check with your bank or credit union to determine its policy for cashing IOUs and paying interest.

The State issued 450,000 IOUs worth $2.6 billion between July 2, 2009, and Sept. 4, 2009, when the IOUs matured. Please note that IOUs stopped accruing interest after Sept. 4, 2009.

For more information about redeeming an IOU, please call the State Treasurer’s Office at 1-888-864-2762 or visit them online at www.treasurer.ca.gov.

calculator Please visit our Registered Warrants Interest Calculator Page for a rough estimate of interest to be paid on your 2009-issued IOUs upon redemption


Registered Warrants Updates and Information (January 2010)

Controller John Chiang and Treasurer Send Letters to Uncashed IOU Holders

On Friday, January 15, 2010, State Controller John Chiang and Treasurer Bill Lockyer will begin mailing letters to those who have not cashed their Registered Warrants (or IOUs) from last summer’s cash crisis.

More than 89,000 letters will be issued reminding individuals and businesses to redeem an estimated $50 million worth of IOUs. Links to a sample letter, and a county-by-county chart of the number and amount of uncashed IOUs, can be found below.

Without budget solutions from the Governor and Legislature, the State Controller was forced to issue IOUs to many State payees last July to prevent a $2.8 billion cash shortage. IOUs began printing July 2, and ended September 3 of last year. The State Treasurer began redeeming the IOUs September 4.

Each IOU accrued interest through September 3, 2009, but holders do not earn interest past that date. The letter includes redemption instructions and contact information for any IOU holders who have questions about the redemption process.

Registered warrant holders can redeem their IOUs by mailing them to 915 Capitol Mall, Attention Registered Warrant Desk, Sacramento, CA 95814. Tomorrow’s mailings will include a pre-addressed envelope for IOU holders. IOUs can also be redeemed in person at that address on weekdays between 9 a.m. and 3 p.m.

IOU holders can also contact their financial institution to see if it will honor the Registered Warrant, and if any charges apply.

The State Treasurer's Office operates a toll-free telephone Help Line to answer questions about the redemption process at 1 888-864-2762. Representatives are available Monday through Friday from 7 a.m. to 4 p.m. An automated version of the Help Line is available 24 hours a day, seven days a week.

Sample copy of letter to uncashed IOU holders

County-by-county chart of uncashed IOUs


August 31, 2009, Update:

State of California registered warrants (IOUs) issued in 2009 will be payable beginning Friday, September 4, 2009. If you want to receive interest that has been earned on the IOU, you must present the warrant to the State Treasurer's Office at 915 Capitol Mall, Sacramento, CA. You may also mail it to the Treasurer's Office at Attention: Registered Warrant Desk, State Treasurer's Office, 915 Capitol Mall, Sacramento, CA 95814.

For more information about redeeming an IOU, please call the State Treasurer’s Office at 1-888-864-2762 or visit them online at www.treasurer.ca.gov.

calculator Please visit our new Registered Warrants Interest Calculator Page for a rough estimate of interest to be paid on your IOUs upon redemption

August 21, 2009, UPDATE:

Board Approves Controller's Recommendation for Redeeming IOUs

The Pooled Money Investment Board (PMIB) has approved the Controller's recommendation that the State redeem IOUs a month early, beginning September 4.

August 13, 2009, UPDATE:

State Controller John Chiang has announced that he has completed “stress testing” the Department of Finance’s cash projections from the State’s newly-revised budget and has determined the new spending plan will provide the State Treasury with enough cash to stop issuing IOUs on September 4, almost one month earlier than expected.

“The State of California owes a debt of gratitude to the thousands of individuals and businesses that were forced to bear the brunt of the State’s chronic fiscal mismanagement,” Chiang said. “Along with short-term loans that are routinely obtained in the fall, this spending plan should provide sufficient cash to meet all of California’s payment obligations through the fiscal year.”

Please see our August 13, 2009, news release for details.

The chart to the right now illustrates that California will have a projected, positive cash outlook for August 2009 - June 2010, assuming early redemption of registered warrants and $10.5 billion in Revenue Anticipation Note borrowing (short-term, cash flow borrowing). Click on this link for a larger .PDF version of the chart.


Previous information:

Without action by the Governor and Legislature to stave off a severe cash deficit, the Controller was forced to issue individual registered warrants, also called IOUs, beginning July 2, 2009.

Payment delays, like those used in February to manage a smaller cash crisis, will not provide sufficient resources to meet the State’s obligations.

A registered warrant is a “promise to pay,” with interest, that is issued by the State when there is not enough cash to meet all of the State’s payment obligations.

If there is sufficient cash available, registered warrants, or IOUs, will be paid by the State Treasurer on October 2, 2009. If the Pooled Money Investment Board (PMIB) determines there is sufficient cash available for redemption at an earlier date, they may be redeemed earlier than October 2, 2009. These IOUs are issued in the place of regular warrants, or checks. The interest rate, set by the PMIB on July 2, 2009, is 3.75% per year.

The State Constitution, federal law and court orders protect education, debt service, state payroll, pensions, In-Home Supportive Services and Medi-Cal providers. In July, those payments will be made with regular, or “normal,” warrants.

However, due to the cash shortage, the State has no alternative but to issue registered warrants, or IOUs, to private businesses, local governments, taxpayers receiving income tax refunds and owners of unclaimed property.

The Controller's office produced a chart illustrating the severity of the cash deficit and why the State was being forced to issue IOUs. (Click on this link for a larger PDF version of the chart.)

 

Registered warrants are issued in the same manner as regular, or normal, pay warrants, and will be issued on the same day a normal warrant is scheduled to be issued. Registered warrants, or IOUs, are legal negotiable instruments that are paid with interest.

Registered warrants are identified by the word “REGISTERED” printed on the face of the warrant. They also contain a special endorsement stamp on the reverse side.

Please visit our new Registered Warrants Frequently Asked Questions page for more detailed information.

Below is a chart showing the total amount of registered warrants expected to be issued for the month of July, as well as links to additional pages with estimated payment amounts for normal payments and registered warrants.

These pages will be updated by the State Controller's Office as new information becomes available. You can also check our news releases page for the latest announcements from Controller Chiang.

Estimated General Fund Disbursements for July 2009
Total Payments to be Made with Regular Warrants
Total Dollar Amount of Registered Warrants (IOUs) to be Issued Total for July 2009
$10.90 billion $2.87 billion $13.77 billion


 

The Controller's office produced a chart illustrating the severity of the cash deficit and why the State was being forced to issue IOUs. 

 

The Controller's office produced a chart illustrating the severity of the cash deficit and why the State was being forced to issue IOUs.