Now, your California state tax refund is in jeopardy

The budget news out of Sacramento continues to worsen.

State officials braced for the possibility of delaying tax refunds to millions of Californians, along with student grants and payments to vendors, as the latest round of budget negotiations between Gov. Arnold Schwarzenegger and Democratic legislators collapsed.

State Controller John Chiang has said that as early as Feb. 1, his office may begin issuing promissory notes if lawmakers have not resolved the budget crisis. The state has done this only once since the Great Depression -- in 1992.

Among the first to get IOUs instead of payments would be business and individual taxpayers who are expecting refunds, local governments and recipients of grants from the California Student Aid Commission. Last year, more than 10 million taxpayers received state refunds totaling $8 billion.

Read the full story here.

Comments

[realthinker]

I have to comment first and foremost on those comments regarding immigration and illegals. Let's get the facts straight Illegals didn't put us in this mess what happened on Wall Street did. Ignorant people are so quick to point a finger at a group that they don't like or understand. I don't understand this way of thinking and nor am I wasting my time to. This is a big reason why we as a nation can't progress. As far as illegals go was Bernard Madoff an illegal? Ask yourself that question and compare this to the many others they have yet to find stealing money from hard working people. I don't like racist people and if you look around you there is not one race we are a mix of many races so to slander and belittle someone is the equivalent of spitting on your co-workers food just because he is from a different race and his relatives belong to the group labeled as illegals. This is called hypocrisy last time I looked it up.

[Lauren]

I heard on the radio they started sending checks out, first batch to arrive yesterday....

[SCVdeb]

To Quote DAN - "the problem is illegal immigration and the money it costs the state, but no one wants to talk about that instead we will just raise the taxes on the people who are citizens so that we can make things easier for the ones that are not, and the root cause of this whole mess, enough is enough it is time to round up all the illegals and send them home, kick their kids out of our schools, deny them medical benefits food stamps welfare and what ever else the state gives them, these are tuff times for our own, raising taxes will just force more people to shop over the internet out of state(most out of state businesses offer free ground shipping and no sales tax< i already do this on any item over $100, sorry California u already get enough of my hard earned money.)buy more fuel economic cars(cheaper less sales tax and lower dmv fees)and drive less all this equals less tax revenue for the state then they r receiving right know, and the problem will just get worse until they address the real problem!!! wake the hell up guys!!! The sad thing is that this whole mess could have been avoided If only the state could have driven the illegals out as fast as they dove businesses and corporations out of the state."

DAN - I couldn't have said it any better!!!!!!! Amen, when are folks going to "... wake-up and smell the frijoles" as ex-LA Councilmember Michael Hernandez was quoted as saying when the told Angelenos that "they" were coming to reclaim "their" City block by block.

[dan]

the problem is illegal immigration and the money it costs the state, but no one wants to talk about that instead we will just raise the taxes on the people who are citizens so that we can make things easier for the ones that are not, and the root cause of this whole mess, enough is enough it is time to round up all the illegals and send them home, kick their kids out of our schools, deny them medical benifits food stamps welfare and what ever else the state gives them, these are tuff times for our own, raising taxes will just force more people to shop over the internet out of state(most out of state businesses offer free ground shipping and no sales tax< i already do this on any item over $100, sorry california u already get enough of my hard earned money.)buy more fuel economic cars(cheaper less sales tax and lower dmv fees)and drive less all this equals less tax revenue for the state then they r rececieving right know, and the problem will just get worse until they address the real problem!!! wake the hell up guys!!! The sad thing is that thiss whole mess could have been avoided If only the state could have driven the illegals out as fast as they dove businesses and corporations out of the state.

[Brittany]

I did my taxes and the state owes me $10 (I only worked in CA for a few months). Where I can I donate my $10 to help the state get out of debt? Clearly they need it a bit more then I do.

[jerry]

Don't riot just do the same thing the state treasury is doing to you, I am going to change my state deductions from 1 to 5 today until I have received equal to or slightly more money than they owe me. No violance, cops love that.

[Mary]

What the California State Government needs right now is a lot of pressure from it's citizens. Right now they owe me $1900.00. I'm afraid I'll never see it. I also always pay my car registration, property taxes, etc. on time. I shouldn't have to expect my money to be held hostage, even if I could have done better on choosing my exemptions. (8 or 9 had seemed like too many) If there is a non-violent protest in Sacramento, I'll be there. What I'd like to see is the entire government to scrap everything and build up from the bottom only what's necessary. No cars, golf courses, remodeling buildings, etc. Just the basics, roads, police, teachers, fire depts, and people who honestly can't help themselves like disabled children and the elderly. They admittedly haven't cut out all the fraudulent use of funds and they are trying to pass the budget like that. Honestly, they should have locked themselves in their chambers all year, not just at the last hour!

[Jeff]

We are in a crisis, plain and simple. I could gripe, moan, and complain that nothing is being done. It won't help. The powers that be need to take drastic measures to stabilize the economy. Yes, it will be painful. Yes, we will ALL have to sacrifice. I am a single dad of 2 boys in my mid 30's. So I know the trials that life can throw at us. Cut back on the latte's. Don't be sucked into the social order of having to own a BMW or Cadillac. Do what you have to do to get by. Prepare for the worst, hope for the best. Optimism is a powerful tool. Pessimism is contagious and breaths life into disparity.

[Patti]

I'm thinking since I had to pay interest for not paying on time last year that the state should pay us interest for not giving us our refunds back this year. This is an outrage. So much money was taken from my paycheck and I already in the low income bracket...give me a fricking break already! Maybe I should hire a lawyer to MAKE them pay me interest. I'm sure if enough of us are in on it they will lose. I bet Ahnold isn't suffering any losses this year.

[Christe Miller]

I am going to petition on the closest highly populated street. How can they keep our money!?!?! isn't that going to keep us in a recession? I will riot too.

[SHL]

I WILL NOT RIOT!!!!!!!! However I am willing to march on the capital, and all the legislators houses. I just paid my property taxes in full. I BUDGETED my monthly income for 6 months to pay it. I payed both car registrations on time. How about NONE of us send in our taxes until APRIL 15. Make them wait as they make us wait.

[angie]

I wonder if they are going to include the penalty and interest they'd charge to US if we didn't pay on time...it's only fair right??

[WG]

Quick playing games. Balance the damn budget. Get the checks out on time, stimulate the economy, which will help, and don't force taxes to change the number of exemptions to decrease the overall amount of state revenue for 2009. But too late I changed my exemptions, fool me once shame on you fool be twice won't happen. Cut lose short people........

[vic]

dont worry dude, i will riot with you, this is ridiculous. they take and take all year and for what? to get deeper in a debt? obviously they are not doing their job, how about we cut their salaries in half and start paying off the debt that way, i welcome everyone in a riot to get OUR HARD EARNED MONEY!!!

[Joe]

Will this affect the attitude towards immigration issues in California?

[DJ]

Dude, if i don't get my refund, i'm going to riot. hopefully not alone as that would suck, i say we RIOT!!

[C-Rocka]

So for those of us who were dumb enough to pay our state taxes all year long, even through such difficult economic times, in anticipation for a refund, we have to wait until our State gets their act together before they will give us what is due to us? Are they going to extend the same courtesy that they have themselves to people who owe them? Isnt this a story in the bible.....?? I guess there really is nothing new under the sun.

[eric]

ftw

[Doug Schultz]

I still haven't recieved my 2007 refund and the CA Tax Board says they are still processing it. For nearly a year now??? How about this California? I'll issue you a promissory note on my property taxes and my income taxes until I get the money you owe me from last year.!!!! This is rediculous.