CALIFORNIA BROKE~Controller Announced Jan.26 Residents Will Recieve IOU's

peaceandlove · 01-20-2009, 03:36 AM

Page #2, Post #34 Californians Scrapping, Squating and Stores Closing Down, 15,000 Show Up For Tax Revolt
Page #2, Post #29 California Dreamin' (meltdown)
Page #2, Post #27 California Counties Begin Secession
Page #2, Post #26 2/21/2009 Grocery Stores Begin to Close in California FOX News
Post #25: 2/13/2009 California State Budget CBS NEWS
Post #24: 2/9/2009 Counties brace for missed payments from state
Post #20: 2/5/2009 NEW
Post #14 FOR UPDATED INFORMATION REGARDING THE ISSUING OF IOU'S ~ CALIFORNIA BROKE

John Chiang announces that his office will suspend $3.7 billion in payments owed to
Californians starting Feb. 1, because with no budget in place the state lacks sufficient cash to pay its bills.

LOS ANGELES TIMES

By Evan Halper and Patrick McGreevy
January 17, 2009

Reporting from Sacramento -- The state will suspend tax refunds, welfare checks, student grants and other payments owed to Californians starting Feb. 1, Controller John Chiang announced Friday.

Chiang said he had no choice but to stop making some $3.7 billion in payments in the absence of action by the governor and lawmakers to close the state's nearly $42-billion budget deficit. More than half of those payments are tax refunds.

The controller said the suspended payments could be rolled into IOUs if California still lacks sufficient cash to pay its bills come March or April.

"It pains me to pull this trigger," Chiang said at a news conference in his office. "But it is an action that is critically necessary."

The payments to be frozen include nearly $2 billion in tax refunds; $300 million in cash grants for needy families and the elderly, blind and disabled; and $13 million in grants for college students.

Even if a budget agreement is reached by the end of this month, tax refunds and other payments could remain temporarily frozen. Chiang said a budget deal may not generate cash quickly enough to resume them immediately.

Article Continues Here:
http://www.latimes.com/news/local/la...,4472460.story

01-20-2009, 03:36 AM	#1
peaceandlove Avalon Senior Member Join Date: Sep 2008 Location: Turtle Island Posts: 2,776	CALIFORNIA BROKE~Controller Announced Jan.26 Residents Will Recieve IOU's Page #2, Post #34 Californians Scrapping, Squating and Stores Closing Down, 15,000 Show Up For Tax Revolt Page #2, Post #29 California Dreamin' (meltdown) Page #2, Post #27 California Counties Begin Secession Page #2, Post #26 2/21/2009 Grocery Stores Begin to Close in California FOX News Post #25: 2/13/2009 California State Budget CBS NEWS Post #24: 2/9/2009 Counties brace for missed payments from state Post #20: 2/5/2009 NEW Post #14 FOR UPDATED INFORMATION REGARDING THE ISSUING OF IOU'S ~ CALIFORNIA BROKE John Chiang announces that his office will suspend $3.7 billion in payments owed to Californians starting Feb. 1, because with no budget in place the state lacks sufficient cash to pay its bills. LOS ANGELES TIMES By Evan Halper and Patrick McGreevy January 17, 2009 Reporting from Sacramento -- The state will suspend tax refunds, welfare checks, student grants and other payments owed to Californians starting Feb. 1, Controller John Chiang announced Friday. Chiang said he had no choice but to stop making some $3.7 billion in payments in the absence of action by the governor and lawmakers to close the state's nearly $42-billion budget deficit. More than half of those payments are tax refunds. The controller said the suspended payments could be rolled into IOUs if California still lacks sufficient cash to pay its bills come March or April. "It pains me to pull this trigger," Chiang said at a news conference in his office. "But it is an action that is critically necessary." The payments to be frozen include nearly $2 billion in tax refunds; $300 million in cash grants for needy families and the elderly, blind and disabled; and $13 million in grants for college students. Even if a budget agreement is reached by the end of this month, tax refunds and other payments could remain temporarily frozen. Chiang said a budget deal may not generate cash quickly enough to resume them immediately. Article Continues Here: http://www.latimes.com/news/local/la...,4472460.story Last edited by peaceandlove; 03-20-2009 at 11:35 PM.