The California State Controller announced that there will be a delay in the payment of corporation and personal income tax refunds due to the budget crisis.

Your refund will to be issued when a budget is finally enacted, but not immediately since the state will need sufficient cash to pay other debts first. Should the state’s cash flow problems continue, the State Controller may issue IOUs. Enterprising merchants eager not to let a crisis go to waste will accept the government paper as though it were cash. Check cashing houses will buy the IOUs at a discount.