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Some Counties Say We Don't Pay You if You Don't Pay Us

The Governor in Dec. 08 | Ambidaze via Flickr
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When the state isn't going to pay your county, what happens when the county says they aren't going to pay the state?Since Gov. Arnold Schwarzenegger has said he would hold back monies for possibly as long as 7 months in order to ease the $42 billion California deficit, "Several counties are considering some form of tax revolt -- either filing lawsuits or delaying tax payments to the state, is reproting.

Los Angeles is among the counties who are considering holding back taxes destined for the state--a list that includes Riverside and Colusa counties so far.

[Los Angeles] County Supervisor Don Knabe said it's important to know whether the state's threat to withhold money is legal. Generally, the state pays counties to operate social service programs and public safety, as well as take the lead on road projects. Counties collect property taxes and other fees, while the state collects sales and income taxes. "I just think we need to look at all our options," Knabe said about withholding taxes from the state. "When they say deferred payments, they don't say you can defer the services."