Wednesday, April 14, 2010

State will be broke by June

From the Times Union:

New York is on track to run out of cash in June, Gov. David Paterson's top budget official said Friday.

The Paterson administration is also pushing lawmakers to complete the 2010-2011 budget, which was due April 1, with plans to offer weekly rather than biweekly stopgap appropriations to keep the government running.

"Our cash flow problems are unprecedented," state Budget Director Robert Megna said during a news briefing in which he laid out plans to deal with the crisis -- including the possibility of short-term borrowing, a practice that was supposed to have been halted in the early 1990s.

Even though the state's revenue projections are holding up, Megna said they will likely come up $1 billion short in June due to a convergence of bills such as $4 billion that is supposed to go to local school districts.

Additionally, payments for Medicaid providers, state employee payroll and income tax refunds go out during that period.

Sales and income tax revenues for the most recent time period, however, don't arrive in state coffers until later in June.


Anonymous said...

And not a single cut in state payroll will be made. So the impact is zero. Nada. Nothing. Nothing will happen. There are no consequences from this.

Anonymous said...

Start cutting all the salaries of state government officials and their staffs. Use a forensic accountant to go through the books and eliminate waste and fraud. Once this is done, the State budget will be fine. Albany also needs to stop borrowing and spending. Don't be mad at the average Joe and expect them to pay for Albany's foolish waste and inefficiency.

Anonymous said...

How about cutting off services to illegals and their multi-babies?

Anonymous said...

Actually, it's government in general that's broke-it hasn't worked properly in a long time. It does TO people, not for people.

KG2V said...

The annual late budget fun was once explained to me as"It's all a game, and it's partly based upon when the FEDERAL budget and city budgets come out - as the money available in the pool numbers flow downhill, and the money demands flow back up, what they are all doing is is deciding what to do, and that the April 1 date just really isn't workable because the folks in Albany don't really know how much money they have till May"

So basically, the state budget SHOULD be moved to May, based upon what else is going on, but this allows the Pols to grandstand for a month