How do you California residents feel about this

It looks like California is going to delay tax refunds due to lack of funds. I am curious about how the California residents here feel about this. To the rest of you, will this be a trend we see in other states? Here’s a link: http://apnews.myway.com/article/20090116/D95OF36O0.html

[I][B]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 available.[/B][/I]

There have been rumors about this happening for some time now, so aware Californians IMO shouldn’t be surprised by this.

I wonder how many people who get an I.O.U will ultimately get their bank to cash it and have the state pay compounding interest to the bank. I’ll likely hang on and patiently wait until I am able to cash that sucker.

Do the they give you something like a Treasury Note? Something that matures on a certain date?

[QUOTE=UTR;2200038]Do the they give you something like a Treasury Note? Something that matures on a certain date?[/QUOTE] IIRC, they have until May 30 before they have to start adding interest to the checks.

If that’s true, then things are about to get even uglier around here! :o

Damn politicians. :rolleyes: