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California Controller To Suspend Tax Refunds, Welfare Checks, Student Grants
LA Times ^ | January 17, 2009

Posted on 01/17/2009 11:47:57 AM PST by 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.

(Excerpt) Read more at latimes.com ...


TOPICS: News/Current Events
KEYWORDS: california; fraud; policestate
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To: The Duke

They know this will put pressure on Washington to give them a bail out. I can not believe people are foolish enough to believe CA is going to suspend welfare for any significant length of time.


41 posted on 01/17/2009 1:30:19 PM PST by Kid Shelleen (Barack the Messiah: Never in the field of US politics have so many waited so long for so little.)
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To: TheZMan
They will suspend welfare after all.

We'll see if it happens. Just imagine the riots if they do suspend welfare checks.

42 posted on 01/17/2009 1:30:58 PM PST by ladyjane
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To: ASOC

“Looking out For #1”

He points out that the government often does things that would get you or I thrown in jail. Well, if anyone needed a crystal-clear example, the government of California refusing to pay its debts is the best I’ve seen.


43 posted on 01/17/2009 1:35:01 PM PST by RWB Patriot ("Let 'em learn the hard way, 'cause teaching them is more trouble than they're worth,")
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To: DoughtyOne

A class action suit is a great idea.

They should pay interest and penalties at the same rate they charge us when we are late.

Also, they need to allow all businesses to suspend deducting California income tax from paychecks until each employee has had the $ amount suspended that he should have been refunded.

Nice bookkeeping nightmare for the state, huh?


44 posted on 01/17/2009 1:35:11 PM PST by Syncro (Ti Ming)
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To: Steelfish

Is a state note money? can you take it to a bank and swap it for cash like the days when states issued notes that were money?


45 posted on 01/17/2009 1:38:55 PM PST by bert (K.E. N.P. +12 . The original point of America was not to be Europe)
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To: Steelfish

If I get an IOU can I file Chapter 7 bankruptcy against the state?


46 posted on 01/17/2009 1:40:02 PM PST by dalereed
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To: Steelfish
The state will suspend tax refunds, welfare checks, student grants and other payments owed to Californians starting Feb. 1...

The tax refunds is the biggest mistake. Paying back the refunds would amount to a stimulus check, in that the people will put that money back into the economy. The kicker here is that the tax refunds go back to the people who overpaid them.

The welfare checks and student grants are wealth redistribution, and should be suspended first. The welfare checks would likely be spent at local businesses and/or utilities, but the student grants will just go back to the state as college tuition in the UC and Cal State systems.

-PJ

47 posted on 01/17/2009 1:40:48 PM PST by Political Junkie Too (You can never overestimate the Democrats' ability to overplay their hand.)
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To: Steelfish
The state will suspend tax refunds, welfare checks, student grants and other payments owed to Californians starting Feb. 1,

it might put a dent in immigration

48 posted on 01/17/2009 1:41:23 PM PST by alrea
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To: informavoracious

“No one wants the blind and elderly to suffer.”

Speak for yourself!

BTW, i’m 71.


49 posted on 01/17/2009 1:45:59 PM PST by dalereed
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To: Poison Pill

Agreed...and so will each taxpayer who gets an “IOU” instead of a refund. If California thinks it has cash flow problems now, just wait until a majority of those due refunds this year make sure that they won’t be owed one in future years!


50 posted on 01/17/2009 1:47:28 PM PST by Reagan80 ("Government is not the solution to our problem, Government IS the problem." -RR; 1980 Inaugural)
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To: Liz

Hilarious!


51 posted on 01/17/2009 1:49:10 PM PST by flushing_kenny (870 square feet of living space and proud of it)
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To: dalereed

Most likely, just as any other bankruptcy, any three creditors could get together to force the debtor into involuntary bankruptcy...just find two friends...


52 posted on 01/17/2009 1:49:53 PM PST by Reagan80 ("Government is not the solution to our problem, Government IS the problem." -RR; 1980 Inaugural)
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To: Nea Wood

...... God help us....

He has no say in the matter. The people get what they deserve.

Destruction of the California cities will be good for America.


53 posted on 01/17/2009 1:50:20 PM PST by bert (K.E. N.P. +12 . The original point of America was not to be Europe)
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To: Steelfish

When you’re BROKE you’re BROKE !


54 posted on 01/17/2009 1:55:01 PM PST by VideoDoctor
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To: TheZMan
Wow. I’ve been proven wrong. They will suspend welfare after all.

Now the only question is how quickly some of the neighborhoods in Oakland, for example, completely destroy themselves.

It would be very interesting indeed to be able to follow various pieces of jewelry and electronics as they are burglarized, fenced, bought by somebody else, re-burglarized from that guy, re-fenced, etc. over the next couple of months.

55 posted on 01/17/2009 2:04:32 PM PST by jiggyboy (Ten per cent of poll respondents are either lying or insane)
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To: Nea Wood
There are going to be riots, and not just in Oakland.

Sure glad I don't work near the foot of 7th Street anymore. I can imagine what it will look like when the checks don't show. Wrong neighborhood for this guy.

56 posted on 01/17/2009 2:09:33 PM PST by engrpat (End the National Nightmare on 1-20-2013)
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To: Steelfish

Holy Cow!

They won’t have to wait for the Santa Anna winds!
The riff raff will burn Oakland to the ground!

Recommendations to armed Californians:
Hit the ammo stores toot sweet!


57 posted on 01/17/2009 2:17:12 PM PST by djf (< Tagline closed until further notice. Awaiting bailout >)
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To: businessprofessor
Here is my plan to prevent the state theft of my refund—any Freeper accountants know if this will work?

My turbo tax refund estimate sits at $240 right now. On Monday I am increasing my dependents for withholding purposes to 99. I currently have $80 withheld in state taxes every biweekly check. Since a dependent in California is worth about a $1000 deduction this should reduce my state tax withholdings to zero. After three paychecks I go back to my old number of dependents. When I file I elect to have my refund carry over to next year's tax liability.

Also, over the years I've tried to keep my California withholding at the level where I neither owe taxes nor get a refund, but I always end up getting around $300 or so. I think I finally figured out why. Unlike the Feds when the state issues its withholding schedules for the new year they are based on the prior year's tax rates. It is not until the end of the year that the new tables that are indexed for inflation are released. So I have been planning my withholdings on a bad tax table all year.

Of course, the Dems in the legislature want to suspend the indexing this year because of their overspending (what they call the budget deficit) so this year I'll probably need to stick with last years tax tables.

58 posted on 01/17/2009 2:24:16 PM PST by blue state conservative
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To: Fast Moving Angel

It sounds good and feel good to not pay legislators until a budget is passed but, Many for legislators their salary is not their main or only income. Some can live off their wealth and put pressure on those who are not wealthy to comply . The governor already only takes a dollar for salary.


59 posted on 01/17/2009 2:28:48 PM PST by ThomasThomas ( Never mind.........it may go both ways...)
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To: blue state conservative

I thought I had read the state was going to issue “warrants” for tax refunds.

I am unsure about the exact legal definition of a “warrant”. It’s not a check, per se.

But I have gotten them in Washington state for overpayment of taxes. If you get another tax bill, you just give them back the warrant.
So maybe in that sense it is a type of private scrip.


60 posted on 01/17/2009 2:28:52 PM PST by djf (< Tagline closed until further notice. Awaiting bailout >)
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