California’s controller says he will begin a 30-day delay on tax refunds and other payments starting Feb. 1 because the state is running out of money.
Controller John Chiang said Friday he must delay $3.7 billion in payments next month because lawmakers have failed to address California’s growing deficit.
With a $41.6 billion shortfall over the next year-and-a-half, the state is on the brink of issuing IOUs.
Chiang says his office must continue education and debt payments but will defer money for tax refunds, student aid, social services and mental health programs.
A severe drop in revenue has left the state’s main bank account depleted. The state had been relying on borrowing from special funds and Wall Street investors; those options are no longer available.

Calif. tax refunds to be delayed starting Feb. 1 [Associated Press]

Comments (40)

  1. Posted by guest | January 16, 2009 at 4:12 PM

    First,
    Sounds like Citi’s payroll

  2. Posted by guest | January 16, 2009 at 4:12 PM

    Too bad, did not read.
    Hasta la Vista.

  3. Posted by guest | January 16, 2009 at 4:13 PM

    Sounds like the terminator was running a Ponzi.

  4. Posted by guest | January 16, 2009 at 4:13 PM

    That’s as good as money, sir. Those are I.O.U.’s.

  5. Posted by guest | January 16, 2009 at 4:13 PM

    We need all of the Girly Men to grow some balls and help all californians. By the way, the snow is great.

  6. Posted by guest | January 16, 2009 at 4:13 PM

    MMe. Pelosi, some TARP please?

  7. Posted by guest | January 16, 2009 at 4:13 PM

    TARP me!

  8. Posted by guest | January 16, 2009 at 4:15 PM

    Do you hear a ticking sound?

  9. Posted by guest | January 16, 2009 at 4:16 PM

    “These are better than cash, they’re IOU’s”
    -Lloyd

  10. Posted by guest | January 16, 2009 at 4:19 PM

    Hmmm, this explains the sales tax audit and the other regulatory letter I received recently for my company. They’re checking the couch cushions folks, so be prepared.

  11. Posted by Anal_yst | January 16, 2009 at 4:20 PM

    Ha, bet all those sheeple that ate up the CALRANs a few months back are shocked, I mean, who knew california was a big clusterf*ck, and they yield was just TOO GOOD TO PASS UP, right???

  12. Posted by guest | January 16, 2009 at 4:21 PM

    A severe drop in revenue has left the state’s main bank account depleted.
    Did the state not save enough? Was it waiting every 1st and 15th for a new check? living check to check or on credit beyond its means?
    tisk tisk on the 8th largest economy in the world

  13. Posted by guest | January 16, 2009 at 4:21 PM

    “I’ll be back”.
    - Gray Davis

  14. Posted by guest | January 16, 2009 at 4:25 PM

    I think CA needs to hit up one of those Payday Loans Shops…Either that or they could pawn the Golden Gate Bridge

  15. Posted by guest | January 16, 2009 at 4:30 PM

    Too ham, didn’t burger.

  16. Posted by guest | January 16, 2009 at 4:31 PM

    We’ve been on the run
    Driving in the sun
    Looking out for #1
    California here we come
    Right back where we started from
    Hustlers grab your guns
    Your shadow weighs a ton
    Driving down the 101
    California here we come
    Right back where we started from
    California!
    Here we come!

  17. Posted by guest | January 16, 2009 at 4:34 PM

    Too Arnold – didn’t make my day

  18. Posted by guest | January 16, 2009 at 4:36 PM

    Fear not, for The Messiah has come. In the sky I see the Star of Washington. I shall follow it and bring him gifts and he shall bestow blessings upon California and all the land.
    Now, does anyone know if I can get myhrr or frankensence through security at the inauguration?

  19. Posted by guest | January 16, 2009 at 4:37 PM

    So if a State takes your money, holds it all year and then refuses to return it…
    Isn’t that just robbery? Granted its state licensed robbery… but still.
    We have Indiana going on the gold standard and Cali giving up on the FRN and now using their own IOU’s… Whats next Euros for Nevada?

  20. Posted by guest | January 16, 2009 at 4:38 PM

    @18. I know what you mean. McCain would have made everything much better.

  21. Posted by guest | January 16, 2009 at 4:39 PM

    My life is brilliant
    Your life’s a joke
    You’re just pathetic
    You’re always broke
    Your homemade Star Trek uniform
    really ain’t impressin’ me
    You’re sufferin’ from delusions of
    Adequicy
    You’re Pitiful (X3) It’s true
    Never had a date
    That ya couldn’t inflate
    And ya smell repulsive too
    What a bummer bein’ you
    Well ya just can’t dance
    And forget romance
    Everybody you know still calls ya
    Farty Pants
    :
    But you always have a job well I mean
    As long as you still can work that slurpie machine
    You’re Pitiful (X3) It’s true
    You’re half undressed
    Eatin’ chips of your chest
    While you’re playin’ Halo 2
    No one’s classier than you
    Lalala la
    Lalala la
    Lalala la Loser
    You’re Pitiful (X3) It’s true
    Your dog would much rather
    Play fetch by itself
    You still live with your Mom and you’re 42
    Guess you’ll never grow a clue
    When it just sucks to be you

  22. Posted by guest | January 16, 2009 at 4:43 PM

    @20
    But McCain was never declared to be The Chosen One or The Messiah. McCain was just a politician running to be President. The Messiah will make everything better, probably by the end of next week. It has been promised.

  23. Posted by guest | January 16, 2009 at 4:50 PM

    22 You’re forgetting that McCain had Sarah Snowpants to pick up the slack for him. And what a winner she is.

  24. Posted by guest | January 16, 2009 at 4:51 PM

    @22. Nice passive verb there.
    Just because Oprah and a few crazies went gaga doesn’t invalidate the fact that he will make a better president than ‘that other one.’

  25. Posted by guest | January 16, 2009 at 4:52 PM

    18. On Tuesday are they having him swear an oath on the Bible or are they just anointing him with oil?

  26. Posted by guest | January 16, 2009 at 4:58 PM

    @25 – He hasn’t yet decided on how We the People shall perform His anointment.

  27. Posted by guest | January 16, 2009 at 5:15 PM

    Maybe we could just boil down some of the fat in the CA budget and use that…or some of Joe Biden’s hair gel.

  28. Posted by guest | January 16, 2009 at 5:21 PM

    Maybe from now on people should just start keeping a portion of the taxes they owe until the IRS audits them, then they can say it was a mistake. It worked for Geithner until he got caught.
    If the person in charge of the Treasury department doesn’t pay all his taxes we shouldn’t have to either. Maybe he was too busy snowboarding to learn how to file a tax return.

  29. Posted by chernevik | January 16, 2009 at 5:24 PM

    Too Hotel California, didn’t leave

  30. Posted by guest | January 16, 2009 at 5:27 PM

    Here is an idea… pay farmers to retire Cows…
    No wonder we are BK as a nation… paying to retire cows… WTF…
    http://www.watertowndailytimes.com/article/20090115/NEWS02/301159967/0/FRONTPAGE

  31. Posted by guest | January 16, 2009 at 5:35 PM

    Judgement Day is inevitable
    Calgreedy

  32. Posted by guest | January 16, 2009 at 5:48 PM

    @30, The Anointed One should love the idea…fewer greenhouse gas emissions, the less $ need for carbon offsets

  33. Posted by guest | January 16, 2009 at 6:24 PM

    Hey, CA is just PIKing, like every other junk issuer

  34. Posted by guest | January 17, 2009 at 2:40 AM

    Ponzinator was always a fraud from the very beginning. Steroid-grown muscles, empty speeches, no brains. Californians are screwed.

  35. Posted by KevinB | January 17, 2009 at 1:24 PM

    Hey, it’s all good. After Arnold gets the Constitution changed, he can be President, and do for all of America what he’s done for California.

  36. Posted by guest | January 18, 2009 at 9:33 AM

    I blame Enron.

  37. Posted by guest | January 18, 2009 at 12:58 PM

    the biggest ponzi schemes
    social security
    higher education
    madoff
    http://endofesq.com/?p=874

  38. Posted by trojan | January 18, 2009 at 4:51 PM

    is it going to suck if obama actually makes the country a better place?

  39. Posted by guest | January 18, 2009 at 7:24 PM

    Does anyone have first-year numbers for California pension analysts?

  40. Posted by guest | January 18, 2009 at 11:20 PM

    #23..who wrote that rap…pretty funny.

Leave a comment

You can log in with your account or comment as a guest below.