Several states plan to delay payments of tax refunds

If you're due a state tax refund this year, you should probably prepare to wait awhile for that check to arrive. Four cash-strapped states, including Alabama, Hawaii, New York and North Carolina are planning to delay refund payments this year in order to cover budgetary shortfalls. And it's possible that more states may follow suit, in particular Idaho and Kansas.

The problem? Many states are simply struggling to stay afloat. A recent report from the Center on Budget and Policy Priorities says the recession has "caused the steepest decline in state tax receipts on record." The organization found that at least 41 states face budget shortfalls for fiscal 2010, which in most states ends June 30. Nine states have budget gaps that are more than 10% of their 2010 budget, including Arizona, Hawaii, Illinois, Kentucky, Nevada, New Mexico, Oklahoma, Rhode Island and Virginia.