SACRAMENTO, Calif. (AP) - California's controller says he will
begin a 30-day delay on tax refunds and other payments starting
Feb. 1 because the state is running out of money.
Controller John Chiang said Friday he must delay $3.7 billion in
payments next month because lawmakers have failed to address
California's growing deficit.
With a $41.6 billion shortfall over the next year-and-a-half,
the state is on the brink of issuing IOUs.
Chiang says his office must continue education and debt payments
but will defer money for tax refunds, student aid, social services
and mental health programs.
A severe drop in revenue has left the state's main bank account
depleted. The state had been relying on borrowing from special
funds and Wall Street investors; those options are no longer
(Copyright 2009 by The Associated Press. All Rights Reserved.)