State Controller John Chiang told California's Franchise Tax Board on Tuesday to stop sending his office tax refund claims.
Chiang has vowed to stop making certain payments, including taxpayer refunds, as of Feb. 1 to conserve cash.
The state faces a roughly $40 billion deficit through July 2010. More acutely, beginning in February the state doesn't have enough money in its coffers to pay its current bills.
Chiang's move today was a procedural one. Chiang announced in mid-January that taxpayer refunds would be suspended beginning next month to ensure the state can continue to pay bondholders and schools.
Jacob Roper, a Chiang spokesman, said today's decision means "the Franchise Tax Board will not send over refunds information to the state controller's office until the state controller indicates there is enough cash available to make those refund payments."
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