Ok, so does anyone actually know how big the California budget deficit is? Because it keeps growing. Why just a few months ago it was $12 billion. Then $15 billion. Then, whoopsie, they admitted it was really $22 billion.
Now it’s $40 billion. So, are they incompetent, lying, or is the worsening economy impacting much harder than previously thought? Yes.
The State Controller just announced that tax refunds, student grants, welfare checks, and other payments will stop Feb. 1. Gosh, why not target the most vulnerable while you’re at it? This, while a political ploy to force the legislature to get off their dead ass and pass the budget, is also probably undeniably true. The state doesn’t have the money.
But they need to do something, rather quickly too. I suggest they attempt to act as if they possess at least marginally competence. Else there will be serious, growing anger and political unrest.
With the State saying they won’t pay tax refunds, it’s just a matter of time before taxpayers (in self defense) reduce their withholding and reduce or stop making quarterly estimates. That’ll further hamper, or perhaps completely halt, California’s cash flow.
Here’s a tip: don’t screw the people who fund you.