California Controller To Suspend Tax Refunds, Welfare Checks, Student Grants

LA Times ^ | January 17, 2009

[Steelfish]

California controller to suspend tax refunds, welfare checks, student grants John Chiang announces that his office will suspend $3.7 billion in payments owed to Californians starting Feb. 1, because with no budget in place the state lacks sufficient cash to pay its bills.

By Evan Halper and Patrick McGreevy January 17, 2009 Reporting from Sacramento --

The state will suspend tax refunds, welfare checks, student grants and other payments owed to Californians starting Feb. 1, Controller John Chiang announced Friday. 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. John Chiang In San Diego, financial free fall -- and... California to delay some payments Southern California officials draw up wish lists for federal stimulus money

The controller said the suspended payments could be rolled into IOUs if California still lacks sufficient cash to pay its bills come March or April. "It pains me to pull this trigger," Chiang said at a news conference in his office. "But it is an action that is critically necessary."

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

[CAluvdubya]

Destruction of the California cities will be good for America.

Gee, thanks a lot.

[HighlyOpinionated]

Suspending WELFARE?

Hahahahahahahahahahaha. Let's hear Barry Zero on this situation.

Look at the predicament you got us into, Ahrnold.

[broncobilly]

About George Bush. I like what he has done, except I disapprove of his neglect of duty on the borders and his lack of using the veto pen on democrat programs and spending. So, yes. he is a case in point.
I have the same puzzlement about Arnold as you do. If we are going to have a budget crisis in a couple of months, why didn't he stand the line with the democrats and have the crisis long ago when we weren't so near bankruptcy? He is a great disappointment. I think he is not a deep thinker and gets swayed by the Kennedy name and wants to fit in.
Now he wants to be in the Obama crowd. I think he is dizzy from having his head in the clouds (fog).
I appreciate your thoughts.

[TightyRighty]

That would be fine and dandy for you.....until they hit Fresno. Then FR would be down and you might have to get up off your bottom and do something.

[ASOC]

So Deska (just so)

If they won't refund the over payments, I suspect many will not pay in the first place.

I have this vision in my mind the State of CA is like an airplane

Trailing smoke

wings coming off

and the pilot is too busy partying to notice....

[bannie]

My money.
I overpaid.
I can’t have it back.

Lovely.

“We’re here from the government, and we’re here to help you.”

(Change your withholding: Keep it all. Pay your taxes in IOU’s.)

[DoughtyOne]

I agree.

[DoughtyOne]

You bet. And they’d deserve it.

[bert]

I know. I know, I was biting my tongue as I typed

[LuxMaker]

"We should never elect anyone who lived a life of big, easy money."

I agree, but usually that is the only choice, sometimes out of a choice of only one candidate.

[dalereed]

“Bankruptcy anyone?”

When the IOUs come back for a tax refund I’ll be looking for 2 other Californoans to file Chapter 7 bankruptcy against the state!