California controller to suspend tax refunds, welfare checks

*IF YOU ARE IN CALIFORNIA, GET READY…*
Reporting from Sacramento — State Controller John Chiang announced today that his office would suspend tax refunds, welfare checks, student grants and other payments owed to Californians starting Feb. 1, as a result of the state’s cash crisis.

Chiang said he had no choice but to stop making some $3.7 billion in payments in the absence of action by the governor and lawmakers to close the state’s nearly $42-billion budget deficit. More than half of those payments are tax refunds.

The controller said the suspended payments could be rolled into IOUs if California still lacked sufficient cash to pay its bills come March or April.

“I take this action with great reluctance,” Chiang said at a news conference in his office. But he said that without action to close the deficit, “there is no way to make it through February unscathed.”

The payments to be frozen include nearly $2 billion in tax refunds; $300 million in cash grants for needy families and the aged, blind and disabled; and $13 million in grants for college students.

http://www.latimes.com/news/local/la-me-budget17-2009jan17,0,4472460.story

4 thoughts on “California controller to suspend tax refunds, welfare checks

  1. malcontentist says:

    You have GOT TO BE KIDDING me! How about I write an IOU out to them if I owe money on April 15? I won’t, so instead I’ll be short cash in a deep recession when I need it most.

    No more sending all this money to the state with no accountability (via withholding every paycheck). They need to be fought on this NOW. http://malcontentist.com/2009/01/california-to-stop-issuing-tax-refunds

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