Kansas suspends income taxes, may not be able to pay employees on time
[quote]TOPEKA, Kan. (AP) – Kansas has suspended income tax refunds and may not
be able to pay employees on time, the state’s budget director said
The state doesn’t have enough money in its main bank
account to pay its bills, prompting Democratic Gov. Kathleen Sebelius
to suggest transferring $225 million from other accounts throughout
state government. But the move required approval from legislative
leaders, and the GOP refused Monday.
Budget Director Duane
Goossen said that without the money, he’s not sure the state can meet
its payroll. State employees are due to be paid again Friday.
Goossen said the state stopped processing income tax refunds last week. [/quote]
California is a given. However, I am shocked at this news. I wouldn’t think that the real estate slump has been an issue there. What has caused the sudden cash crunch?
Disheartening. My dad and many friends there.
Thought this fiscally conservative area might be a little more spared than us profligate Californians. Well, I see the shortfall numbers are smaller. . . not much consolation. Those workers in the state capitol might spend some time contemplating the John Steuart Curry mural of John Brown while they wait for their checks.
Judging by my family the real estate bubble in Kansas was pretty small. Housing prices had gone up in Kansas City and more desirable college towns but not nearly as much up and down again as the coasts. Plus it’s a very VERY conservative place politically. Mostly a state of farmers who don’t spend money and don’t like the government spending it either. So I’m wondering if this is fallout from loss of invested state funds rather than overspending. Just a guess at this point.
I just hope my wife gets paid friday. It sure was nice to have to learn about this in the news.
I sort of expected this and was ready to file our taxes as soon as we had all the paperwork. Got ours back already. Will come in handy if they stop paying state employees, wasn’t expecting that part.
Those workers in the state capitol might spend some time contemplating the John Steuart Curry mural of John Brown while they wait for their checks.
[/quote] Heh, I had to write a paper on that mural last semester.
My home state (born in Lawrence, educated at KU and KU Med), what a sorry state! I wonder if Iowa (where we currently live) is far behind? No insights here, just wanted to share in the misery.
I’ve never understood the philosophy of many people who seem to like to have a large amount of taxes withheld so that they can get a big refund in April. You wouldn’t overpay your utility bill every month in order to get an annual "refund", would you?Loaning the government your money tax free never makes sense…especially when the government is insolvent and may not be able to repay your loan.
Might I suggest that everybody review their withholding. If it’s huge, talk to your tax advisor and find out what you should change it to in order to get a much smaller refund. Put the increase in your take home pay to good use. I’m sure you can figure out how to use it to benefit your family much better than the government can. After all, it IS your money.
After all, if it can happen in Kansas, it can happen anywhere – even to the US government.
Hi fellow mid-westerners. Never seem to outgrow that connection even if we haven’t lived there for awhile. I have a theory that growing up where the weather can kill you makes people more humble than those who never experience that.
Mokosh – do you remember the size of that mural? I remember it being huge and a little scary.
cpetersj – went to school at KU and lived there for a long time. A good friend still works at the KU med emergency room in Kansas City. Smallish world.
Mokosh – do you remember the size of that mural? I remember it being huge and a little scary. [/quote] It’s really big. 31 feet by 11.5 feet