ABC News has learned that tax refunds are now on hold in California for the first time in state history, according to the state controller's office.
During the 30-day delay, the controller's office estimates that a combined 2.74 million California individuals and businesses will have their tax refund delayed.
The controller's office estimates that the delay in tax refunds will free up $1.99 billion over the next month to pay for education, debt service, and other payments that legally have first claim to state funds.
California has had no money in its general fund for the past 17 months, and has been paying its bills by borrowing from Wall Street and special internal funds.
If the state's legislators and governor do not reach a budget agreement that brings immediate funds into the state's coffers, the state's borrowed funds will be entirely exhausted at the end of February, according to the controller's office.
I didn't know businesses were involved in this delay... gee you think that helps or hurts the economny? How many cash-strapped tax-paying businesses are going to miss payroll this month? How many people do you think this is going to effect? How many tax payers aren't going to be able to pay their mortgage this month? How many more forclousers?
There has been a lot of controversy over the NV state budget. It includes 6% paycuts for already underpaid teachers, and also UNLV will lose a lot of state money.
ReplyDeleteUNLV is a classic case of liberal spending. Last year they built a new building that most students said there was no need for. It was around $93,000,000. They built it at around $800 per square foot. Now they have a budget deficit of $50,000,000 (half the cost of that building) so they are going to double the tuition rates. But don't worry, because the building has "water and energy-saving features".
The Republican student association at UNLV did some research into salaries and spending. They found articles written in LA and LV newspapers about it. They found that about half of the UNLV staff makes over six figures, with about seven of those making over $200K. They also found that the president makes $407K annually, and he purchased a $15,000 desk for his office with school funds.
How about instead of raising tuition, they quit spending money like retards!
States can't run with huge deficits like the federal government. We don't have our own mints to print money.
ReplyDeleteGovernor Gibbons challenged critics to propose their own balanced budget.
That's one of my pet peeves. People are so eager to hand out the criticism even though they can't think of a better solution. Well something needs to be done! Help solve the problem, or STFU.