The state of California may be resorting to IOUs to make payments as early as next month if a budget compromise cannot be achieved, Assemblyman Anthony Adams said this week.

“We have about three weeks to get the job done,” the 59th District Republican told the Valley Sun. He blamed the Democratic majority for the stalemate over meeting a $17 billion shortfall. “They've consistently refused to bargain in good faith.”

Republican leaders have resorted to court action to challenge a series of revenue measures which Adams characterized as illegal taxes. The use of a fee structure was intended to bypass the need for a two-thirds majority in both houses for new taxes. Among the fees/taxes are a 1.5 cent boost in the sales tax and an increase in car license fees.

“We are in agreement with many of the proposed cuts,” Adams said. “But we want to talk about substantive reforms.”

The Republican minority has presented a plan with $22 million in cuts and revenue, including a 5% cut in pay for legislators.

Asked what was the next step needed, Adams said, “It's up to the Democrats. We can and we must get the job done.” He said the governor, who has frequently clashed with fellow Republicans in the past, has failed to take a clear position. “It's time to lock us in a room and come up with a solution.”

Adams said he would oppose the administration's current proposal to defer up to $20 billion in debt beyond the 2009-10 year.

There is also some hope for assistance from the federal stimulus package now being drafted. The governor in a letter this week to President-elect Barack Obama put in a pitch for a California share in the new bailout measure. The governor said the state has nearly $44 billion in projects that are “shovel ready,” and he also asked for funding to take some of the Medicaid burden off the state.

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