Tuesday, March 12, 2013

Why the lag on business filings in California?

Well, this doesn't help!

California Secretary of State Debra Bowen blames state budget cuts for the many embarrassing shortcomings and backlogs in her office. Lack of money should not have been a problem. After all, the business portal side of Bowen's office — the place where entrepreneurs seeking to form corporations or limited liability companies or partnerships file their paperwork — is entirely fee-based. It's supposed to be self-supporting. The businesses pay for the cost of the operation.

In fact, California charges some of the highest fees of any state in the nation for what appears to be perhaps the worst service, as a limited survey by The Sacramento Bee's Jon Ortiz suggests.

In the depths of the recession, from 2008 to 2010, the governor and Legislature foolishly, and possibly illegally, borrowed more than $80 million in business filing fees to balance the state budget. The resulting staff shortages left thousands of business applications, many of them containing uncashed checks, sitting at the secretary of state's office for months waiting to be processed.

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