Oregon Public Broadcasting

The state of California edged further to the financial brink Wednesday. If no budget deal is made by the end of the day, the state will start paying contracts in IOUs.

As Ethan Lindsey reports, that could affect the Pacific Northwest.

California’s $26 billion budget deficit makes Oregon and Washington look downright righteous, financially-speaking.

In fact, the state may stop funding payments to the elderly -- as well as contractors doing business with the state.

Instead, the state would issue IOUs.

A review of California’s contract database reveals a handful of Oregon and Washington firms with current contracts.

Jackie Angel is the contract specialist for Vancouver-based CTS LanguageLink. Her company translates and interprets documents for California.

Jackie Angel: “Really, there’s nothing that we can do. And, the places that we do have contracts with we’ve never had issue. And some of the things that have come through, we have bid on, but we don’t rip our hair out when we don’t get it.”

Angel says California’s problems aren’t new – and companies such as hers are now careful about bidding on any contracts in the state.