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CA tax refunds could be delayed
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| Orbital32 |
Hopefully AZ doesn't go this route. Apparently we are going broke too.
| quote: | SACRAMENTO, Calif. - California's controller said Friday he will be forced to impose a 30-day delay on tax refunds and some other payments starting Feb. 1 if lawmakers fail to agree on a plan to erase a nearly $42 billion budget deficit.
Controller John Chiang, who acts as the state's accountant, said he will have no choice but to delay $3.7 billion in payments next month because the state is running out of cash.
Doing so, he said, would buy the state a few more weeks before its accounts run dry. The state is on the brink of issuing IOUs as it faces a $41.6 billion shortfall over the next year-and-a-half.
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"Let me make this perfectly clear: This is a painful decision," Chiang said during a news conference in Sacramento. "It is an action that is critically necessary. The fallout from issuing IOUs, or for the state going into default, are significant and long-lasting and something to be avoided at nearly all costs."
Money freed to pay bills
In another budget-related development, a state investment board on Friday freed up $650 million to pay construction bills for public works projects, less than a month after freezing nearly $4 billion of infrastructure spending.
A severe drop in revenue from sales, property and capital gains taxes has left the state's main bank account depleted. The state has not had a positive cash balance since July 12, 2007, Chiang said.
The state had been relying on borrowing from special funds and Wall Street investors, but those options are no longer available.
Chiang said his office must continue $6.6 billion in education and debt payments next month but will defer money for tax refunds, student aid, social services and mental health programs.
Of the $3.7 billion in delayed payments, an estimated $1.9 billion will come from personal income tax refunds and $81 million from bank and corporate tax refunds.
Under the law, the state does not have to issue tax refunds until May 30, but the state usually cuts checks as it processes returns.
Delay could add to economic pain
Chiang said delaying tax refunds and payments to counties for supporting poor families will only exacerbate the weak economy. People will not be able to use their tax refunds to buy cars or pay bills, he said.
Paul McIntosh, executive director of the California State Association of Counties, said many counties already are low on reserves and may have to shut down welfare offices or end drug and mental health treatment programs at a time when applications are up 22 percent statewide.
Sacramento resident Sherlie Magers, 57, who suffers from bipolar disorder, said she lives off $900 a month from a disability check.
"I do not know what we will do if the state cannot make its payments," Magers said. "We will not have money for food. Our gas and utilities will be cut off."
'Debts ... we really have to pay'
While Chiang warned of payment delays, the California Pooled Money Investment Board agreed to ease its suspension of public works funding.
The board voted 3-0 to allow the state to spend $650 million to pay construction bills that were incurred before the freeze was imposed on Dec. 17.
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The money will be used to cover administrative costs and pay bills for a variety of transportation, park and water projects.
"These are debts we think we really have to pay," said state Finance Director Mike Genest, one of the board members.
The board's chairman, state Treasurer Bill Lockyer, and Genest said the Department of Finance and the state controller would determine which projects get the money.
Last month, the board voted to hold up nearly $4 billion in funding for more than 5,000 projects ranging from carpool lanes to classrooms. Board members said the money was needed for other programs because of the state's cash shortage. |
http://www.msnbc.msn.com/id/28696452/ |
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| Psiweaver |
| hopefully this means I can delay paying as well. |
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| SexySmart666 |
Arnold was supposed to be our Hero.
Where did he go so wrong??? |
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| DaveT |
Actually, I'm more worried about them running out of funds for unemployment and can't get any federal loan.
Millions of people are going to be ed if they can't get unemployment checks ...even honest people, like myself, who will be looking for a job.
I don't start getting mine until next month...
California's EDD system is so screwed. They scheduled a phone interview with me which I couldn't make (cause I would be on a plane), and tried calling AT LEAST 100 times over five days trying to reschedule, but got the same "We are taking too many calls to handle." followed by some message to file online (which I had already done and had nothing to do with my call), and then it'd hang up. I could never get to the automated system, unless I called during off hours....in which I could get to the reschedule your appointment selection, just for it to tell me I'd need to call during business hours!!
So I missed my call, and get a nice voicemail saying because I missed my appointment the decision on my claim will be based on existing material.
If they call my old employer, I should be fine but I don't trust the EDD since California has over 3X more claims on appeal than the second closest state! And they are EXTREMELY slow (far slower than the laws say they must be) at coming to decisions on appeals.....I don't want to take the chance of being denied.
So now I'm forced to send a message through their website begging to reschedule everything.
F'n frustrating and really has me worried. And I am not sure since I filed online if it's OK for me to walk into an unemployment office....since oh wait, you have to call the same f'n number to schedule the interview I need, GARRRRRRRRRRRRRR.....
If anyone has any advise, I'm all ears.
I won't start getting unemployment until after Feb 9th or so as it's when my 60-day WARN Act notice ends with my old employer, CBS Broadcasting Corp, so I have a little time...hopefully I can get this figured out before it's possibly full on denied. |
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| SexySmart666 |
:(
Where you down sized or ?? |
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| sstranger1 |
| quote: | Originally posted by DaveT
California's EDD system is so screwed. They scheduled a phone interview with me which I couldn't make (cause I would be on a plane), and tried calling AT LEAST 100 times over five days trying to reschedule, but got the same "We are taking too many calls to handle." followed by some message to file online (which I had already done and had nothing to do with my call), and then it'd hang up. I could never get to the automated system, unless I called during off hours....in which I could get to the reschedule your appointment selection, just for it to tell me I'd need to call during business hours!!
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The best time to call is at 8 or 8:30, whenever their phone lines open. I had success talking to somebody when I called that early. Or you can try to talk to the 2nd language people there. You don't have to wait as long and maybe they will help you out in English, even if you don't speak another language. I had a friend who did that and she was speaking English throughout the interview but another friend who tried that just got redirected to the mainline and eventually got the same "We are taking too many calls" message. |
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| DaveT |
| I have tried at all times of the day...!!!!!!!!!!!!!!!!!!! |
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| gehzumteufel |
| Dave, I wouldn't worry. You were at the same job for 9 years. If you had 2 jobs in 1 year I would worry. I filed for unemployment last year and missed the call too. I got the max. |
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| Orbital32 |
Sorry to hear about all that Dave :(
If anybody has a s3cur1ty cl3ar4nce let me know! I can see what my company has open. |
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| SexySmart666 |
| Is Arnold still acting? |
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| dollaroff |
I was telling my friend:
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I do not know if:
a. You are getting a refund;
b. If so, file your taxes ASAP (I'd say by Wed of this week to have a shot of getting the direct deposit)?
If not, and you need the money, I would increase the number of current exemptions to get more cash in hand now, and then if you ever get the refund, either apply it to next year, send it back in (estimated payment), or reduce the number of exemptions for the remaining of the year.
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This assumes you're doing electronic filing and electronic deposit, as it would need to settle by the end of the month.
Otherwise, I would assume that you would get the money sometime in late May or June. |
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| in2muzikk |
| quote: | Originally posted by dollaroff
Otherwise, I would assume that you would get the money sometime in late May or June. |
...of 2013... :nervous: |
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