Kansas suspends tax returns and may not make State payroll

**imagine** · 02-17-2009, 08:58 AM

Some one here said California passed out IOU's for tax returns and other states may follow. Looks like Kansas might be that next state.

http://news.yahoo.com/s/ap/20090216/..._budget_kansas

Looks like the Envelope for state payroll, medicare reimbursement, schools, is empty and the can't borrow from another envelope it is against state rules. and they don't want to sign a debt note to borrow money they aren't sure they can pay back by the end of the fiscal year. Solution - Try to make a new budget that they can borrow the money to pay the payroll etc and pay the debt back and have a new budget that they will not have to borrow the money.

So is this good thing or not? Bet it doesn't feel like it to the people not gtting their refunds or their pay check next Friday.

here is another link about this topic that I found
http://www.kansas.com/news/breaking/story/701750.html

**mombottoo** · 02-17-2009, 09:44 AM

For the life of me I cannot figure out how states do not have the money to refund taxes, that they collected with the understanding there would be refunds issued against those tax collections. I bet the states would not like it much if the citizens of those states said, "hey, we are not paying our taxes this year, because we do not have the money".

Michigan has it's issues, but our constitution requires the state to have a balanced budget...are there a lot of cuts to services? Yes, there are and it sucks. But, at least those who are planning on their state income tax refund are going to be getting it.

**imagine** · 02-17-2009, 09:49 AM

Originally Posted by mombottoo

For the life of me I cannot figure out how states do not have the money to refund taxes, that they collected with the understanding there would be refunds issued against those tax collections. I bet the states would not like it much if the citizens of those states said, "hey, we are not paying our taxes this year, because we do not have the money".

Michigan has it's issues, but our constitution requires the state to have a balanced budget...are there a lot of cuts to services? Yes, there are and it sucks. But, at least those who are planning on their state income tax refund are going to be getting it.

It looks to me like Kansas likes balanced budgets too. It appears that they just didn't make the revenue they expected and are trying to figure out how to handle it now. Much like if an person has a budget but their pay check ends up being smaller than they were expecting.

**Spirit Deer** · 02-17-2009, 09:56 AM

States don't stockpile the money they collect in taxes, they spend it, so it's easy to see why they don't have the money to refund.

Getting an IOU for a tax refund is one thing, getting an IOU for your wages as a state employee is quite another. I wonder if the mortgage companies and all the utilities and others will accept IOUs from state employees. Doubtful, and then what? It's not like state employees can suddenly come up with money elsewhere when they're employed but not being paid.

**3LittleMonkeys** · 02-17-2009, 10:14 AM

Its all politics here. Sigh..

http://www.nbcactionnews.com/content...xvV2Fyoog.cspx

GOP leaders are hoping to pressure Sebelius into signing a bill making $326 million in adjustments to the budget for the fiscal year that ends June 30. They said the bill needs to be adopted before the state can guarantee any new debts are repaid. Legislators approved that bill last week, and it is expected to reach the governor’s desk by Tuesday.

There is money in other accounts but the GOP is holding out because they want Sebelius to sign the budget.

Its a fricken mess. Oh and I live in KS and we have not filed our taxes yet. Just fricken lovely.

**Gardengal18** · 02-17-2009, 10:32 AM

Dave Ramsey and Suze Orman always stress the importance of not giving the Govt (Fed or State) a 0% Interest Free Loan. If possible try to figure out or have your accountant figure out what you need to be claiming during the year so that you don't have to wait for a Tax Refund Check, OR owe them anything come April 15th. Then when you get the extra money in your paychecks each week, INVEST them yourselves in an Interest bearing account. I have a feeling there will be more states to follow. And yes the money that they have been collecting ALL year from Tax-Payers should be kept aside but they don't - they misappropriate those funds. Just take a look at the mess they've made of the Social Security Fund. You really want them holding on to your money Interest Free???

**Contrary Housewife** · 02-17-2009, 11:00 AM

Getting an IOU for a tax refund is one thing, getting an IOU for your wages as a state employee is quite another.

Not really. That tax refund IS my wages, that the state took from me and held against taxes that I may or may not owe them. It's not 'free money', it's money I earned, just like the state employees earned theirs.

Fortunately, Kansas doesn't have a lot of our money this year and we don't depend on our returns to pay down debt each spring like a lot of folks do.

**fixer** · 02-17-2009, 11:58 AM

I hope people learn that a tax refund, in most cases, is not a windfall. I understand getting earned income credits, but for most it is merely money they let the government hold onto for a year. I try hard to to withhold just enough not to allow this to happen. This year we owe the state twelve dollars and will get a five dollar refund from the federal government. We are seeing things occur now that were unimaginable just a year ago. You would be money ahead even if you had to pay someone to calculate your withholding to allow you to get a return from that money.

**MomToTwoBoys** · 02-17-2009, 12:38 PM

Last year, DH had almost $7k pulled from his check for federal taxes. How much did he get back? $2,800 or so. There are certain stipulations towards how much of that check he actually gets back because the federal government uses that money towards things that we take advantage of every day.

I understand that people want all of their money back, but I'd sooner have a steady job, nice roads, a safe school for my kids, etc than have to worry about that money.

Paying taxes goes towards the upkeep and construction of the many things that everyone uses on a daily basis. If you don't like that much money being removed from your checks because of the premises that you may not get it back the next year, then don't withhold so much. Don't use any public services at all. I'd sooner pay a bit back in taxes than have to rely on my tax return being so large and being disappointed when it doesn't happen.

Keeping a job trumps getting back spending cash.

**tbs727** · 02-17-2009, 01:26 PM

Originally Posted by Gardengal18

Dave Ramsey and Suze Orman always stress the importance of not giving the Govt (Fed or State) a 0% Interest Free Loan. If possible try to figure out or have your accountant figure out what you need to be claiming during the year so that you don't have to wait for a Tax Refund Check, OR owe them anything come April 15th. Then when you get the extra money in your paychecks each week, INVEST them yourselves in an Interest bearing account. I have a feeling there will be more states to follow. And yes the money that they have been collecting ALL year from Tax-Payers should be kept aside but they don't - they misappropriate those funds. Just take a look at the mess they've made of the Social Security Fund. You really want them holding on to your money Interest Free???

This is exactly what I was going to say. Thank you.

**Contrary Housewife** · 02-17-2009, 01:56 PM

I understand that people want all of their money back, but I'd sooner have a steady job, nice roads, a safe school for my kids, etc than have to worry about that money.

Paying taxes goes towards the upkeep and construction of the many things that everyone uses on a daily basis.

I don't have a problem paying taxes. I understand where it goes. But the extra they withhold, I want back.

It's tough for us to calculate how much to withhold because DH often works contract, which means his salary can change three times in a year or (like last year) he can be unemployed for several months at a time. So we try, but it's impossible to be very accurate.

As for not using the public services... we don't. We don't live in Kansas. DH just happened to work 1 mile over the line for a few months last year, and the State feels entitled to collect taxes from us for services we will not ever use or benefit from.

**beks37** · 02-17-2009, 02:20 PM

Guess I'm glad that I filed my return last Monday and got my refund direct deposited on Friday!

**rainbowgc** · 02-17-2009, 05:57 PM

I think the states that are doing this suck. Hope Kansas gets itself righted.

**freebs** · 02-17-2009, 06:17 PM

Well coming from kansas, they withold what they think it will take to cover your taxes for household size. Now you can take the homestead refund and the food refund making it that you can get a decent refund. Now what is my friend gonna do when her dh doesnt get his paycheck on friday and all the direct debits come out and there is no money?? How is she gonna feed her 5 kids with no money and over drafts hitting every day????? They have already gotten there kansas state refund so they wont have to wait on that. I hope Sebelius gets it figured out!

**frugalbabe** · 02-17-2009, 06:54 PM

If I lived in Kansas or California I would be so tempted to send in my utility bill with a big fat IOU note. I wouldn't because I don't have the guts...but I'd be temtped!