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alstry (35.45)

States' Cash Position "PRECARIOUS"!!!!!!!!!!!!!!!!!!!!

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November 07, 2009 – Comments (4)

WHAT STARTED IN CALIFORNIA IS SPREADING LIKE A PANDEMIC................ 

With tax collections $200 million below forecasts since July, Minnesota's cash flow has become dicey, revenue officials say.

Minnesota's precarious cash flow problem is prompting the Department of Revenue to delay corporate and sales tax refunds for the second time in six months, department officials disclosed Thursday.

The state is currently delaying $128 million in corporate tax refunds to 461 companies and $11.9 million in sales tax refunds to about 350 to 400 businesses until late December. However, the Revenue Department is not notifying the firms unless companies specifically request a status update on their tax refunds.

Alabama taxpayers expecting refunds may
have to wait up to two months before getting a check this year.
State Revenue Commissioner Tim Russell says the state is taking
six to eight weeks to return refunds to taxpayers. Alabama has so
far paid $275 million in refunds this fiscal year. In fiscal year
2008, the department refunded $518 million.
Russell says a reason for the delay is a slowing cash flow due
to the economic downturn.

BASED ON PRELIMINARY DATA........THINGS ARE LIKELY TO GET A LOT WORSE GOING FORWARD........

4 Comments – Post Your Own

#1) On November 07, 2009 at 9:38 PM, alstry (35.45) wrote:

11.10.9...WHEN YOU FEEL THE GOVERNMENT CRASH!!!!!!

LORAIN — Among the 36 city workers who received layoff notices yesterday are the three correctional officers who keep the city's jail open.

Now, after the city spent more than $300,000 to renovate the jail and reopen it in May 2008, it will close, another consequence of the city's dire financial predicament. Mayor Anthony Krasienko met with city employees, dispatchers and correctional officers who received layoff notices to deliver the bad news.

Krasienko said the layoffs will have a minimal effect on the 2009 budget, but are geared toward the revenue shortfall in 2010.

"It will save between $2 and $2.5 million" next year, he said.

Also being gutted is the city's Parks and Recreation Department, as its three employees are being laid off and the department's director will most likely be assigned to the street department.

The remainder of the city employee cuts will come from building, electrical, engineering, street, utilities and probationary employees and three police dispatchers.

Police Chief Cel Rivera said he is frustrated with the administration's decision to let go of his three corrections officers. He said the police department is down to just 93 officers, despite the FBI's recommendation to have 140, and an officer is retiring Jan. 1 who won't be replaced. Rivera said it is unlikely he will be able to pull officers off the road to run the jail, so it will inevitably close its doors again.

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#2) On November 07, 2009 at 10:09 PM, alstry (35.45) wrote:

NO WONDER WHY INCOME TAXES DOWN OVER 20%.....UNEMPLOYMENT NOW OVER 20%

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#3) On November 07, 2009 at 10:27 PM, alasker (< 20) wrote:

it should be an interesting transition. While the USA has had low unemployment and low interest rates for the past couple of decades- most countries around the world have been surviving with a histrorically higher unemployment rate than we have now. I know its apples to oranges.

should be interesting transition though- while we are printing money china is buying mines in the USA/ Africa/ Afganistan/ they tried Australia, and they have 90% of the rare earth metals needed in the production of things.

An interesting fact my grandfather told me was about where the japenese got the steel to make tanks before WWII. They dont have many resources. they bought railroads in the USA and shipped the tracks back to japan.

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#4) On November 07, 2009 at 10:42 PM, alstry (35.45) wrote:

alas,

Actually, America has had MASSIVE employment which has funded social security and medicare/aid.  As the population ages, the need for large numbers paying taxes is even greater.

The negative impact on funding for retirement and health care is going to be enormous as fewer and fewer are paying taxes. 

Health Care is responsible for about 20% of GDP and most of health care funding comes from government.  The government crash is going to have a much more significant impact on the economy compared to the credit crisis.......although it can be said they are both related traveling on the same road.

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