If a budget is not adopted by June 30, the state will be forced to issue IOUs to pay its bills for such items as  social services, income tax refunds and vendor and private contractor payments. State workers cannot be paid with IOUs. "Next Wednesday, we start a fiscal year with a massively unbalanced spending plan and a cash shortfall not seen since the Great Depression," Chiang says in a press release. Among the most affected by the IOUs -- officially, registered warrants -- are taxpayers, small businesses and local governments. In addition, resorting to IOUs sends a signal that California has exhausted all other options to manage its cash flow, the press release says. For Sacramento Bee story, click here.