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Posted by on Feb 16, 2009 in Uncategorized | 4 comments

Kansas May Suspend Tax Refunds

The state of Kansas announced today that it may not be able to pay its employees on time, and has suspended income tax refunds, reflecting the poor economic conditions facing most of the nation. State governments have been hit hard by the recession, and several are considering plans for payroll cuts and other budgetary reductions.

The central bank account for the state does not have enough money in it to pay the bills, so Gov. Kathleen Sebelius has proposed that money be moved from other accounts so the states can cover its costs. The move requires legislative approval, and Republican leaders have blocked the move. Without the money transfers, the state may not meet payroll this Friday, when most state employees are due to be paid.

Kansas Governor Kathleen Sebelius

Kansas Governor Kathleen Sebelius

The state stopped issuing state income tax refunds last week, and has not released information about when those tax refunds may be issued in the future. Republicans and Democrats are still working out the details of possible internal loans, but no plan has been agreed upon.

Other states are also feeling the pinch of the economic crisis, most notably California. In the most current legislative battle in the state, the government is considering cutting $15 billing in spending, including $8.6 billion from education and $1.4 billion from payroll costs. The payroll reduction includes furloughs for 200,000 state workers once a month. The proposal calls for another $11 billion in borrowing and $700 million in tax breaks for corporations.

Due to partisan differences, a deal has not yet been reached on the California plan.

  • LonghornMama

    Gee, Sebelius could come out here and run California. She can’t do any better — or worse!

  • Mad Taxpayer

    So…because the government can’t budget their money…I have to go without my tax return. I’m so sick of people not working so they can receive government help..which comes from my taxes. Will those people see their “free” money before I receive what is rightfully mine? I’ve seen firsthand so many people on welfare take that money & buy lottery tickets & alcohol while their kids still go hungry. Apparently I’m just not playing the system right. We got ourselves into this economic crisis.

  • Mad taxes payer as well

    I would have strongly agree with this same for the fedrell system that steals our money and the people that do nothing by choice get back 4 times the refund i get
    this bail out money stinks as well how about they bail the people out of there debt so we have money to spend
    the corp. just blow the money on over priced cars and desks

  • Feeling the pain

    The onely one’s hurting by all of this is the middle class workers