Tax Refunds Now on Hold in California

January 27, 2009 6:23 PM

http://blogs.abcnews.com/thenote/2009/01/tax-refunds-now.html">ABC News' Teddy Davis Reports:

ABC News has learned that tax refunds are now on hold in California for the first time in state history, according to the state controller's office.

"Unfortunately, we have asked the California Franchise Tax Board not to send over tax refund claims beginning today because we will not be able to process them and have them out the door by Feb. 1 when a 30-day delay in tax refunds goes into effect," Hallye Jordan, spokeswoman to California State Controller John Chiang, tells ABC News.

During the 30-day delay, the controller's office estimates that a combined 2.74 million California individuals and businesses will have their tax refund delayed.

The controller's office estimates that the delay in tax refunds will free up $1.99 billion over the next month to pay for education, debt service, and other payments that legally have first claim to state funds.

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http://www.latimes.com/news/local/la-me-boards18-2009jan18,0,4472462.story

As Gov. Arnold Schwarzenegger orders steep salary cuts for most of the state workforce, some Sacramento players are doing much better by him.

The governor has added state legislators and former political aides to the state payroll, with six-figure salaries. Their positions: plum posts on the same state boards and commissions that the governor crusaded to abolish a few years ago, calling them a waste of taxpayer money.

Two GOP lawmakers who recently left office and have limited expertise in thorny employment issues have received jobs at the state Unemployment Insurance Appeals Board. The panel met 12 times last year, and members are paid $128,109.

"It's a soft landing spot for ex-elected officials who can make a good living while showing up 12 times a year," said Joel Fox, an antitax advocate who worked on the governor's aborted plan to shut down the boards. "The positions should be eliminated."

Seats on state boards have long been awarded to lawmakers loyal to governors and legislative leaders.

But Schwarzenegger made the most recent appointments just days after ordering 238,000 state workers to be furloughed two days a month or take an equivalent pay cut of about 9%. He also requested that the state payroll be reduced an additional 10%, including layoffs if necessary.