Budget Deadline Is Coming, And Your Refund Isn't - CBS News 8 - San Diego, CA News Station - KFMB Channel 8

Budget Deadline Is Coming, And Your Refund Isn't

Posted: Updated:

California still doesn't have a budget, and with the state running out of money, it's running out of options to close a massive deficit. The state is considering handing out IOUs in place of tax refunds.

If it sounds unfamiliar, that's probably because it's only happened once since the Great Depression. With no budget agreement, the state may be issuing IOUs in place of your tax refund, and taxpayers like Dorothea Roberts aren't too happy.

"We heard a thirty day delay, we're hoping with an e-filing that perhaps we could get our refund in a week," she said. "It's borderline devastating really, you know people really need their funds right now and times are difficult."

The last time it happened was 1992, and we covered it as millions of Californians went without.

"You know I have a lot of expenses, I have rent, it's for living, for my kids, for shopping, for survival at least," taxpayer Ghasan Aljaxairi said.

"I would love to be able to send the government an IOU," taxpayer Lang Trostler said.

But Trostler knows not paying your taxes on time comes with severe penalties and interest - something many taxpayers say they should get if in fact the state delays.

"I think that if we've put into it and they take it out of our paycheck, if we've paid too much we need to get it back," taxpayer Ann Summit said. "I just feel like they're taking enough, they've taken, taken, taken... how much more can you take?"

The state is looking for enough to cover a projected $42 billion deficit at a time when those like Roberts are already relying on every penny.

"For this to happen at this point in time, it's most, most disconcerting," she said.

Economists fear issuing IOUs will hurt the state's credit rating, making it harder to borrow money that could potentially help lift us out of this financial crisis.

Powered by Frankly
All content © Copyright 2000 - 2017 Midwest Television, Inc. All Rights Reserved.
For more information on this site, please read our Privacy Policy, and Terms of Service, and Ad Choices.