Posted on January 19, 2009 by enicks
Reporting from Sacramento, California.
The State of California 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 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.
About a third of all state welfare payments go to Los Angeles County, where officials said they can shift money around to keep the payments flowing in the short term.
Los Angeles County officials said they would cover welfare payments to more than 500,000 local recipients — for now.
“The million-dollar question is how long this will last,” said L.A. County Chief Executive William T Fujioka. “We cannot sustain a huge and very long hit.”
BUT – the $160 million Obama Palooza Inauguration continues…
California is projected to be $346 million short of the funds it needs to pay all its bills in February. By March, the state would be so far in the red that even continuing to suspend payments would not cover the shortfall. I mean lets get our priorties straight shall we! Evidently throwing $160 million at a party thats primary purpose is to usher in the first black president of the united states is definitely more critical to the future of our nation and more important than giving or loaning $160 million to California. Yes another historical moment is upon us……the death of California; the 8th largerst economy in the world. Step aside California ~ The Obama and his change have arrived!
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