New York state is on track to run out of money in June and will almost certainly end the months of May, June, July and August with a negative balance, according to Comptroller Thomas DiNapoli and state budget officials.
That�s unprecedented in New York history, DiNapoli said.
�The state�s finances are very shaky,� DiNapoli said. �Big bills are piling up, and there may not be enough cash to cover them.�
The state ended the 2009-10 fiscal year (which closed March 31) with a general fund balance of $2.3 billion. But that�s only because Gov. David Paterson delayed $2.9 billion in payments to schools and other groups. Those payments will soon come due.
The state is on the hook to pay schools $4 billion June 1, including $2.1 billion that was deferred in March.
�Based on current trends, we anticipate being $1 billion short on that school payment,� state budget Spokesman Matt Anderson said.
What will the state do? Anderson said there are a number of options, but one clear frontrunner.
�The best way to address this is to enact a timely and responsible budget as soon as possible,� he said.
If no budget is in place, the state could be forced to do short-term borrowing or further delay payments to schools.
(Read More: Syracuse.com)
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One Response
This is a “news” story????
The saying: dog bites man – not news; man bites dog – news. Therefore: New York City runs out of money – not news; New York City cuts budget and lives within its means – news.