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| Calif. Taxpayers Due Refunds May Get IOUs |
| 2009-01-02 |
| If you expect you'll be getting a refund from California when you file your 2008 state income tax return, be prepared: you may instead receive a "registered warrant." Translation: an IOU. California is rapidly running out of money. Blame it on the state budget deficit that continues to bleed billions of dollars from California's reserves. Facing inadequate credit to make up the difference, California's Controller John Chiang warns that by the end of February, the nation's most populous state may not be able to pay some of its debts, and instead be reduced to issuing those creditors IOUs. "My office has projected that, in approximately 60 days, there will be insufficient cash available to meet all expenditures reflected in the 2008-09 Budget Act," stated a Tuesday letter from Controller Chiang to the directors of all state agencies. "To ensure that the State can meet its obligations to schools, debt service, and others entitled to payment under the State Constitution, federal law, or court order. California may begin, as early as February 1, 2009, issuing registered warrants...commonly referred to as IOUs...to individuals and entities in lieu of regular payments." California has not resorted to IOUs since the 1992 budget crisis when Pete Wilson was governor. Back then, some 100,000 state employees got IOUs instead of paychecks for two months until the state approved a budget. The 1992 crisis came during summer, well past the tax season, but at least 12,000 tax refunds were also issued as IOUs, according to a contemporaneous report in the Los Angeles Times. State workers filed a lawsuit, arguing the IOUs violated the federal Fair Labor Standards Act. They were awarded damages. In this current cash crisis, The Controller's office expects that hourly state employees would continue to receive paychecks. But IOUs could be issued to elected state officials, including legislators and judges, and their appointed staff, some 1700 in all, "as well as tax refunds owed to individuals and businesses," according to Chaing aide Hallye Jordan. |
| Posted by:Fred |
| #11 Can I pay my Federal income tax with an IOU? |
| Posted by: JohnQC 2009-01-02 18:27 |
| #10 I always eat vegetarian......... Cattle, antelope, deer, elk........they're all vegetarians. |
| Posted by: no mo uro 2009-01-02 15:47 |
| #9 Now you are going to get PETA on your case. Bring 'em on. I hear vegetarians are delicious. |
| Posted by: DarthVader 2009-01-02 14:16 |
| #8 Tar is bad for the enviroment, being oil based and all..... and feathers! Now you are going to get PETA on your case. |
| Posted by: USN, Ret. 2009-01-02 13:37 |
| #7 The people and businesses starting getting too many of these things and you could see a full tax revolt coming down the pipe. I would be all for some tar and feathering too, but I think Cali is too wussfied for that. |
| Posted by: DarthVader 2009-01-02 10:02 |
| #6 If the budget isn't balanced, pay them in IOU script. A simple way to do this might be to apply any "refund" coming to you to next years' taxes :). |
| Posted by: Blackbeard Greter7953 2009-01-02 09:41 |
| #5 Debt is coming full circle in the land of the golden glow. Can I borrow some lunch money on the glow? I just want to get latted at Krock's golden arches. Please! |
| Posted by: Richard of Oregon 2009-01-02 04:25 |
| #4 |
| Posted by: GolfBravoUSMC 2009-01-02 02:01 |
| #3 Pass these out to the boys in leau of pay --- Governor William J. Le Petomane - Blazing Saddles Also: We have to protect our phoney baloney jobs here, gentlemen! We must do something about this immediately! Immediately! Immediately! Harrumph! Harrumph! Harrumph! |
| Posted by: CrazyFool 2009-01-02 00:33 |
| #2 It's been said elsewhere but Laficornia residents might perhaps should consider paying their state taxes this April 15th with an IOU. If it's good enough for the gummint ... |
| Posted by: Steve White 2009-01-02 00:25 |
| #1 But IOUs could be issued to elected state officials, including legislators and judges, and their appointed staff, some 1700 in all Shoulda started that years ago. If the budget isn't balanced, pay them in IOU script. Wonder how many judges would issue directions on spending for non-appropriated activities if they had to take IOUs when the crunch hit. |
| Posted by: Procopius2k 2009-01-02 00:10 |