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Tuesday, October 20, 2009



How would you feel about getting a check for only 8 cents in the mail? That is just one reason why Georgia's lieutenant governor is slamming the state's department of revenue -- criticizing the way the department handled this year's tax refunds.
Mike Aiken said he isn't quite sure what to do with the check he just got from the state of Georgia -- a check that would boost his bank account by 8 cents.

He had to wait more than three months for his Georgia tax refund. The state owed him interest -- 8 cents. It cost the state 33 cents to mail it.

"They should have put a minimum somewhere," Aiken said. "Anything less than a dollar forget it. I don't know how the rest of the public may feel about it -- maybe they want their eight cents."

Facing a budget shortfall, the Department of Revenue had to reduce the staff that processes tax refunds -- the cuts to that staff saved the department $2.4 million. Because the checks slowed getting out refund checks, the state wound up paying approximately $2 million in interest to those who had to wait.

Add to that, about $100,000 in extra postage to send those interest checks.

Lt. Gov. Casey Cagle calls the situation unacceptable.

"The Department of Revenue was cut less than some other state agencies," Cagle said. "And more important, the core mission of the Department of Revenue is to collect taxes and process those -- and when you're not doing it in a timely manner, you're violating your core principle."

The revenue department had to cut a total of $12 million from its budget. Cagle says those cuts should have come in places other than the people who process tax refunds. As for that 8 cent check -- by law the state has to pay interest to anyone who gets their refund as late as Mike Aiken got his -- no matter the amount.

Aiken says he may keep the check as a souvenir.

Twice, Revenue Commissioner Bart Graham has declined requetsts from 11Alive News for an interview. Late Monday afternoon, his department e-mailed answers to several questions. The department says it made cuts to avoid closing offices or discontinuing any services - and says it was not a foregone conclusion that cuts would have caused refund checks to go out late.

As for the lieutenant governor''s statements - the revenue department had no comment.

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