California to Suspend Welfare Checks
 

California to Suspend Welfare Checks

Evan Halper and Patrick McGreevy
Los Angeles Times
January 17, 2009

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.

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Re: California to Suspend Welfare Checks
 

WOW! I can "sort of" see welfare checks and student grants, because they are charitable grants of public monies that are not being paid for "services rendered." It stinks, and will surely put many already distressed people in greater distress, but it is, in the end, "free money." But tax refunds? It's money that the state has been keeping - tax and interest free - that does not belong to the state. It's not the state's money, and they have no right to keep it.

I wonder if they suspended any other cash disbursements, like the State Controller's paycheck, or the paycheck of the governor and lawmakers responsible for this debacle.

Re: California to Suspend Welfare Checks
 

Now don't be silly... that would make too much sense. :)

Re: California to Suspend Welfare Checks
 

So, the workers of California will, of course, suspend their state income tax withholding, I presume?

:D

Re: California to Suspend Welfare Checks
 

Absolutely!!!! I will be doing something close to that! The state will owe me money and if I don't get it, I will be adding exemptions then when next year rolls around, I should be oweing the state....no more of this trying to overpay to not be in debt to the state anymore! Hopefully it will not come down to this though.

Re: California to Suspend Welfare Checks
 

Can anyone say "Civil unrest"? No walfare checks could start riots......seriously. What aobut food stamps? Will they also cut them?

Re: California to Suspend Welfare Checks