California holds back payments amid budget crisis

Like thousands of other Californians, Marcus Sanders would like a tax refund to help his family as recession tightens its grip on the economy and while he looks for full-time work.

When California’s state government will release its refunds, however, is uncertain.

The payments were due to start on Monday but State Controller John Chiang has said he will hold back the refunds for at least 30 days because the state must close a $15 billion shortfall in its current budget and needs its dwindling cash for more pressing payments, including debt service.

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Posted in * Economics, Politics, Economy, Politics in General, State Government, The Credit Freeze Crisis of Fall 2008/The Recession of 2007--