California holds back payments amid budget crisis

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Source: Reuters

SAN FRANCISCO (Reuters) – Like thousands of other Californians, Marcus Sanders would like a tax refund to help his family as recession tightens its grip on the economy and while he looks for full-time work.

When California's state government will release its refunds, however, is uncertain.

The payments were due to start on Monday but State Controller John Chiang has said he will hold back the refunds for at least 30 days because the state must close a $15 billion shortfall in its current budget and needs its dwindling cash for more pressing payments, including debt service.

Sanders, a 46-year-old lawyer and corporate consultant in Antioch, California, who is getting by on contract work, said he appreciates the state's financial predicament and would be willing to wait on a tax refund to help. But not every household may be able to afford to do the same, he said.

"Every bit of cash you get in a tight time, you'll use it," Sanders said.


Read more: http://news.yahoo.com/s/nm/20090202/us_nm/us_usa_economy_california

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Given that it's effectively free money to the state, and due back to the taxpayer, I'd be royally pissed if mine was withheld.

[Baby Snooks]

1. And still being withheld...

The state should have just given a credit but of course the state can't do that. They need the current tax income as well to cover the shortfall. So next year's refund may not be in the mail either. California is a disaster area. And a portent of what is going to happen in other states as well.

[Joanne98]

2. They would have the money if they let the non-violent drug offenders

out of jail!

[Baby Snooks]

3. Oh, my, you're right..

But then of course they wouldn't have an excuse for not sending the corporate crooks to prison. There would be beds available! And the celebrity drunks and drug addicts might get 60 days in jail instead of 45.

I have such fond memories of California. At this point, that is all they are. The late, great state of California. Instead of slipping into the ocean it's slipping into bankruptcy.

[Tab]

4. "California falls into the sea. That's the day I'm going back to Annandale"

Steely Dan.

[Lance_Boyle]

14. "tumbles" and "that'll" - but close. n/t

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16. Reposted here as the proper reply

Yes

That was the perfect turn of phrase too.

Unfortunately, I'm getting old.

[lunatica]

12. legalizing marihuana would help bring in revernues and create jobs too

For the first time the University of California is accepting less state residents who get their education there for a fraction of what out of staters and foreigners pay so they can make up for the shrinking budget they get from the state. The university of California has nine campuses and is a state university for those who don't know.

[Psephos]

17. Good point, but it wouldn't begin to make up the shortfall

Quick facts: California's entire prison budget is slightly less than $6 billion. There are 161,000 inmates the state prisons. Dissolve the prisons, free every last prisoner, and California still comes up short $9 billion for the current year and $19 billion short for the coming year. And I presume you aren't advocating freeing all the prisoners.

http://igs.berkeley.edu/library/htCaliforniaPrisonUnion.htm

http://www.latimes.com/news/opinion/commentary/la-oe-ross27-2009jan27,0,5791450.story

[Earth_First]

5. Paid back with penalties and interest, right?

Okay, maybe not penalties, but interest...


...right?

[Joe Bacon]

6. Will this FINALLY make people wake up about Arnold?

Will they finally demand his impeachment over his total incompetency?

[liberalhistorian]

7. Didn't Gray Davis face an angry recall over

being a lot less incompetent than The "Guvernator" himself, who didn't even have any experience at all except vapid celebrity? So I guess that's good enough for repubs as long as he's a repub. If he were a Dem, like Davis, they'd have already strung him up naked by his balls outside the Guv mansion.

[Wizard777]

8. Time for a Total Recall on the Governator. Maybe they can just act like they're not beyond broke?

There! The Problem is fixed Hollywood style. Everyone just act like you've got money.

[Garbo 2004]

9. Arnie doesn't have Repubs bankrolling recall drive like Davis did.

Darrell Issa spend over $1 million of his own money bankrolling the recall petition/drive which up to that point was going nowhere. Thought he'd buy hisself a governorship. When he succeeded getting it on the ballot, the Party told him, "Sorry Darrell, but your not the guy." He withdrew from the race in tears. Literally.

[liberalhistorian]

10. No kidding? Issa actually was a candidate

as well? He's even more of a pathetic wanker loser than I thought.

[Garbo 2004]

11. Arnie's entrance as a candidate big footed Issa. Issa had a tearful press conference

announcing he wasn't going to run. The guy was sobbing.

[liberalhistorian]

18. What an idiot. And I just saw him on CNN

complaining about how the National Parks get too much federal money and they should hardly get any and yadda yadda yadda. Meanwhile, he has no problem whatsoever with hundreds of billions of the same federal money going to pad the banksters lavish lifestyles. The Park system has been underfunded for years, most have a terrible backlog of repairs and maintenance and have been struggling just with the crumbs they're thrown. Now the fucker is complaining about them getting too much? GRRRRR. May the Ghost of Teddy Roosevelt visit him and kick his ass.

[onager]

13. You're all going to hate me...

I recently got my CA state tax refund.

Expected refund: $531.

Actual refund: $12,531.

Yeah, I know, I didn't believe it either. Right now I have accountants talking to the state to try and figure this out. I'm working overseas, and apparently my employer withheld too much in taxes. Instead of the employer refunding the money, which I expected, they passed it along to the state for refund. Or some damn thing.

I'm sure not spending any of it until I know this is legit. Right now it's sitting in my money market account collecting interest.

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15. Yes

That was the perfect turn of phrase too.

Unfortunately, I'm getting old.