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Friday, Jun 2, 2023

Chiang Announces Probable Delay for Tax Refunds

The state will likely delay individual and business tax refunds in order to preserve money for education and paying off debt, State Controller John Chiang said. Overall, the state is in a budgetary deficit position to the tune of more than $42 billion. Of late, Chiang has stewarded day-to-day finances via loans from Wall Street and juggling monies among special funds and immediate needs. “For months, I have warned state leaders that our cash flow will be in serious danger this spring,” Chiang said in a statement. “Without corrective action from the governor and legislature, there is no way to make it through February unscathed.” In addition to delaying tax refunds, payments to contractors and vendors are likely to be delayed. The same goes for assistance to an estimated one million residents who rely on the state to help pay for rent, health services, services for the blind, food and utilitites. Similarly, state and municipal public-service agencies will experience a temporary cut-off in state funding, if the delays,expected to hit in February,are not circumvented by a sweeping last-minute budget solution or a financial Band-Aid from the legislature and the governor.

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