California Suspending Tax Refunds

This is why you must stay on top of your state and federal withholding.

http://blogs.abcnews.com/thenote/2009/01/tax-refunds-now.html

Look for other states to follow suit.

You absolutely have the right, at least for now, to adjust your W4 and the state equivalent so that you don't owe or receive a tax refund.

If you have the opportunity because you are self-employed or have a business or investments outside of your day job, get with your CPA and figure out how to balance this out. It is bad enough to give the government an interest free loan by allowing more to be withheld than you owe. It is even worse to be in a position to be denied the refund you are owed.