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CA to Suspend Tax Refunds, Payments to Disabled, Student Loans Feb 1

Empty refrigerator

Evan Halper of the LA Times has this sobering news:

Reporting from Sacramento — State Controller John Chiang announced today that his office would suspend tax refunds, welfare checks, student grants and other payments owed to Californians starting Feb. 1, as a result of the state’s cash crisis.

Whew – good thing none of those folks were counting on that money. People on welfare have other ways to get by, I’m sure. And students – let them eat Ramen.

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.

Wonder what happens to all the folks who took out loans based on getting those tax refunds.

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


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

Needy families – aged – blind – disabled. Look at what we have become.  For shame.

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