With Controller John Chiang announcing Thursday that California will stop issuing IOUs, or registered warrants, by September 4, taxpayers, local governments and businesses can finally heave a sigh of relief - they would not have to bear the burden of the economically distraught state's debt by accepting paper promises instead of cash!

Chiang, who said that the decision concerning IOUs had come after the revised California budget had reportedly been "stress-tested," added that the state leaders began issuing the IOUs after the budget fixes failed to loosen the recession's grip on California. He said that without the IOUs, the state would practically have run out of cash.

Though the recently-announced decision is subject to approval from a state panel, Chiang said that the revised budget, signed by Governor Arnold Schwarzenegger on July 29, would enable the state to redeem the IOUs nearly a month prior to the earlier planned date of October 2.

Chiang added in an interview: "I'm sorry that the state had to take a path that we had to ask the creditors to make these tremendous sacrifices."

Meanwhile, California's new budget along with an approved loan from the state's treasurer - both aimed at closing the state's $24 billion deficit - will allow the state to meet its cash needs. The loan would be paid with short-term debt called revenue anticipation notes.