3rd Stimulus

[ua_guy]

Here's a good analogy. Let's say we are on a boat which has a hole, do you try to plug the hole, or bail water. Some here seems to want to bail water (tossing around free money), rather than get to the cause of the problem and stop spending and plugging the hole. For those wanting to keep bailing water, your boat will surely sink.

...But I don't think an analogy is needed to explain what is happening here. California took in more money than it spent, and so they're giving part of that back. More than just a one-time thing due to Covid, they've been running a surplus for more than a few years. This all appears to be at the state level, and doesn't appear to be the result of ARP, since the state had a surplus before ARP.

What am I missing?

[QuarterMillionMan]

California gets an ‘F’ on its fiscal health report card, ranks 42nd in nation, study says – Orange County Register (ocregister.com)

California is $264 billion short or more.

[ua_guy]

So, CA is following GAAP but “truth in accounting”, last year, said they have a retirement obligation— on which they’re making extra payments and plans to meet.

I guess nobody eats until not a single cent is owed. Got it.

[Thrif-t]

It's not just CA, there are other states too. My DD is in IN and she is getting $325 next month. We're in Ohio and get nothing.

https://fox8.com/news/states-sending-out-checks-this-year-how-ohio-stacks-up/?fbclid=IwAR3g-vzHb9BxSHqkHJYH7pdJBw5JwxQa1FuvTEJDc65oJQoJhV1KiwcuzYE

[myrdale]

So, CA is following GAAP but “truth in accounting”, last year, said they have a retirement obligation— on which they’re making extra payments and plans to meet.

I guess nobody eats until not a single cent is owed. Got it.

One can follow Generally Accepted Accounting Practices in their reporting, and still spend themselves into oblivion, most especially when it is someone else's money. My understanding is GAAP is all about reporting, not about budgeting.

The article states California owes billions more than it has thanks primarily to generous pension obligations and health care promises made to retirees. The article goes on to state California is extremely late in releasing its audited financial statements, a particular problem for transparency and accountability. This suggest in my opinion they are not following GAAP.

Whether we are talking about the guy digging a ditch, the lady at the DMV, the prison guard, teacher, or the governor himself, their retirement is being funded the tax paying citizens of that state. It very well may be the amount of tax payer money promised to be given to these government workers was far more than what the state could support.

[ua_guy]

One can follow Generally Accepted Accounting Practices in their reporting, and still spend themselves into oblivion, most especially when it is someone else's money. My understanding is GAAP is all about reporting, not about budgeting.

The article states California owes billions more than it has thanks primarily to generous pension obligations and health care promises made to retirees. The article goes on to state California is extremely late in releasing its audited financial statements, a particular problem for transparency and accountability. This suggest in my opinion they are not following GAAP.

Whether we are talking about the guy digging a ditch, the lady at the DMV, the prison guard, teacher, or the governor himself, their retirement is being funded the tax paying citizens of that state. It very well may be the amount of tax payer money promised to be given to these government workers was far more than what the state could support.

Nope. GAAP dictates how they report assets, liabilities, and equity in general accounting. The article suggests the state is not being transparent and it's just not true.

The article is from October 2021. I would have hoped they have already filed any 2020 fiscal year reports, since we're in 2022 now.

It's not uncommon for a state to have a pension liability, and for that future liability to be greater than the money it has in the pot, right now. Same for any privately or publicly held company.

[QuarterMillionMan]

Did you not qualify for some reason? If you qualified but didn't get the check, then you should have gotten it in the process of doing your taxes for the year. At least I think that's how it worked. I'm not totally sure since we didn't qualify for any of it so I didn't pay close attention.

Approximately 1 million taxpayers will automatically receive special payments of up to $1,400 from the IRS in the coming weeks. The money will be directly deposited into eligible people's bank accounts or sent in the mail by a paper check.

The IRS said it's distributing about $2.4 billion to taxpayers who failed to claim a Recovery Rebate Credit on their 2021 tax returns. People who missed one of the COVID stimulus payments or had received less than the full amount were able to claim the credit. But the IRS on Friday said it discovered many eligible taxpayers hadn't done so.

“Looking at our internal data, we realized that one million taxpayers overlooked claiming this complex credit when they were actually eligible,” IRS Commissioner Danny Werfel said in a statement.

For the 3rd stimulus of $1400, I got $993. I hope the IRS gives me the remainder of $407 to bring me to the $1400 total (I know wishful thinking).

[disneysteve]

up to $1,400 from the IRS

For the 3rd stimulus of $1400, I got $993. I hope the IRS gives me the remainder of $407 to bring me to the $1400 total

As you said, the payments are UP TO $1,400. If you got $993, that's what you qualified for. I have no idea what the criteria were but you got what was due to you, so no, you won't be getting more.

[ua_guy]

For the 3rd stimulus of $1400, I got $993. I hope the IRS gives me the remainder of $407 to bring me to the $1400 total (I know wishful thinking).

I know you've recently said in another post that you are extremely against government spending policies and handouts. You have the option of sending whatever else the IRS sends you back to the US treasury, as to not burden or cause further inflation.

[QuarterMillionMan]

As you said, the payments are UP TO $1,400. If you got $993, that's what you qualified for. I have no idea what the criteria were but you got what was due to you, so no, you won't be getting more.

You're right.

[QuarterMillionMan]

I know you've recently said in another post that you are extremely against government spending policies and handouts. You have the option of sending whatever else the IRS sends you back to the US treasury, as to not burden or cause further inflation.

Lol.