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Kansas suspends tax refunds

Discussion in 'Sports and News' started by HandsomeHarley, Feb 16, 2009.

  1. HandsomeHarley

    HandsomeHarley Well-Known Member

    From KAKE.com, a Wichita news station.

    Any other states pulling this shit? I owe my state money and if they pull this crap, I'd be tempted to say, "Sorry guys, I can't pay my taxes because I don't have the money." Imagine the response.

    And from what I hear, this governor is doing such a great job of handling Kansas' money that Obama is considering her for a cabinet post.

    *****
    Kansas is suspending income tax refunds and may not be able to pay its employees on time.
    The state is strapped for cash in its main bank account. Republican legislative leaders blocked an effort by Democratic Gov. Kathleen Sebelius to transfer funds into the account.
    Sebelius wanted to move $225 million from other accounts throughout state government, allowing the state to pay its bills. That move requires approval of legislative leaders, and Republicans
    balked.
    Now Budget Director Duane Goossen said he's not sure the state can meet its payroll. State employees are due to be paid again Friday.
    GOP leaders want Sebelius to sign a bill making $326 million in adjustments to the budget for the fiscal year that ends June 30.
    Legislators approved that bill last week, but it has not reached her desk.
    # State Treasurer Dennis McKinney released the following statement:
    “The Budget Director’s recommendation to transfer money to the state general fund was not about spending or about the budget bill. This was about ensuring that the state can continue to pay its bills until our account balances improve with tax returns in April.
    “By failing to act on the recommendation of the state budget director to shore up balances in the general fund, legislative leaders put our reputation as a reliable bill payer and our credit rating at risk.
    “This is taking a budget fight one step too far. Through inaction legislative leaders have put in jeopardy the state’s ability to make payments for payroll, public schools, health care and income tax refunds.
    “The budget director has no partisan agenda in today’s proposal to bolster the state’s general fund balance. If the State Finance Council had approved his initial recommendation in December, we would not be in the situation we are in today.”
    ---
    The following is a statement from Governor Kathleen Sebelius regarding efforts today by Republican Leadership to derail the State Finance Council:
    "This is a difficult time for Kansas families, seniors, workers and business owners who are dealing each day with the economic challenges presented by this historic recession.
    "Last week, I called a meeting of the State Finance Council to consider the issuance of a certificate of indebtedness - a routine action dealing with state cash flow, that allows us to move money from one account to another so we can pay our bills on time. The use of these certificates has been approved every year for the last decade.
    "When the State Finance Council last met in December we reviewed the cash flow patterns for this year and asked for a certificate to cover the remainder of the fiscal year. A majority of legislative council members refused to approve a certificate to adequately meet obligations through the end of February.
    "Today, the Republican leadership of the legislature told me they would not approve the February certificate, only necessary because of their actions in December, until I sign the 2009 budget bill.
    "The problem is, due to the slow action by the legislature, the bill has not been delivered to my desk, so I have nothing to sign.
    "Furthermore, because this bill deals with hundreds of millions of dollars affecting almost every Kansan - once it is delivered - it would be prudent for me to review it thoroughly with my staff to make sure there are no errors in the text of the bill, as there have been in the past.
    "The certificate deals with cash flow and as legislative leaders all know, it has nothing to do with the revised 2009 budget. We will need a certificate to make our monthly payments, whether or not the budget work is completed.
    "This political game the Republican leaders are playing affects real Kansas families.
    "The state cannot pay tax refunds to families who are waiting for money they need to pay rent and utilities. State employee paychecks, due this Wednesday, are now in jeopardy. Payments to health care providers and school payments, due this month, could be delayed.
    "Through their refusal to act today, the Republican legislative leadership is jeopardizing our citizens' pocketbooks for no other reason than to play political games - games in which the only ones set to lose are Kansas families, workers and schools."
    ---
    State Treasurer comments on State Finance Council inaction:
    The following are remarks by State Treasurer Dennis McKinney regarding the refusal of legislative leaders to take action to shore up dwindling state funds.
    "The Budget Director's recommendation to transfer money to the state general fund was not about spending or about the budget bill. This was about ensuring that the state can continue to pay its bills until our account balances improve with tax returns in April.
    "By failing to act on the recommendation of the state budget director to shore up balances in the general fund, legislative leaders put our reputation as a reliable bill payer and our credit rating at risk.
    "This is taking a budget fight one step too far. Through inaction legislative leaders have put in jeopardy the state's ability to make payments for payroll, public schools, health care and income tax refunds.
    "The budget director has no partisan agenda in today's proposal to bolster the state's general fund balance. If the State Finance Council had approved his initial recommendation in December, we would not be in the situation we are in today."
     
  2. OTD

    OTD Active Member

    California is sending out I.O.U.s for its tax refunds, and for some other payments. We were supposed to have the budget wrapped up this weekend, but we're still waiting.
     
  3. 93Devil

    93Devil Well-Known Member

    Mind you, in Virginia a school district is not allowed to carry over any money from one fiscal year to the next. So you should only ask for what you need.

    That said, we are being asked to give back 15 million to the state and the county governemnt.

    Granted, the public sector does have loose money in its budget, but not 15 million. Teachers who have jobs now will not have jobs next fall.
     
  4. mike311gd

    mike311gd Active Member

    [​IMG]

    "That's as good as money, sir. Those are our IOUs. You can add them up yourself. Every penny's accounted for. ... I'd hang onto this one."
     
  5. Chef

    Chef Active Member

    I sincerely hope Obama gives ole Kate a cabinet post.......that way she'll get the fuck out of Kansas.
     
  6. Michael_ Gee

    Michael_ Gee Well-Known Member

    You read the story, right? About how Republicans are responsible for this logjam as well? Kansas, ruled the liberal elite? I don't think so.
     
  7. Many people set their tax deductions so that they pay more during the year and get a refund when they do their taxes. You may want to set you deductions this year so you only pay what is owed and forgo the rebate at the end of the year to avoid being screwed like this.
     
  8. It should be noted that according to Kansas laws - it is illegal for the government to run a deficit. What the Governor did was either very poor planning or a willful illegal deficit.
     
  9. andyouare?

    andyouare? Guest

    So every state that ran a deficit -- or had to make cuts to balance the budget -- is guilty of poor planning or a "willful illegal deficit?"

    That's just about every state in the union. There's this little recession going around. It's been in the news.
     
  10. Not every state has anti-deficit laws. Those that do should be well versed on how to comply.
     
  11. andyouare?

    andyouare? Guest

    Well, she did try to comply:

    Basically, it's a lot of political shenanigans. The Republican legislature passed it's own budget, that included cuts in education -- how will they learn about creationism!

    Anyway, from the KCstar:

    I can understand the Republican concern of too many IOUs, but to simply say, "It's the governor's fault" is shortsighted.

    Politically, I don't see how the legislature wins the PR battle. They're going to be the ones looking bad. See: Gingrich, government shutdown, 1994.
     
  12. You realize, of course, that if the Republicans -- who, now, today, are running on the platform, both locally and nationally, of crash the government so we can get elected again -- had allowed the funds transfer to go through, that was about the government paying its bill now, and nothing to do with the 2009 budget, so the anti-deficit thing is a red herring.
     
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