Hearsay

I heard a brief curious statement from a co-worker last week. I told Julie. She asked some friends. They told her what they had read. She told me.

It appears there was an article in the local newspaper about the state's financial problems. The state is attempting to raise money by selling some property. If unsuccessful, beginning in February, the state will issue IOUs for three months rather than pay checks.

Arizona has what I consider a curious system. State income tax is a percentage of federal tax. If the federal tax rate is reduced then state revenue is reduced.

Another interesting item. Today I made changes to the online state income tax withholding form for University employees. The change will go into effect after the first of the year. The change was a reduction in rates.

So, if we receive IOUs in February then we'll have less state tax withheld from our IOUs.

Personally, I discount all of this. Never trust gossip or newspapers.