From the NY Post:
State government ended the quarter in deficit for only the second time in modern history last month and could go broke again before the summer's over, state Comptroller Thomas DiNapoli warned yesterday.
The state's general fund ended June more than $87 million short despite improved tax collections, DiNapoli said in his monthly cash report.
The comptroller traced the gap to the Legislature's failure to pass a complete budget and Gov. Paterson's decision to carry $2.9 billion in delayed payments into this fiscal year.
"There are fiscal storm clouds rolling in," DiNapoli said in a statement.
"The next school aid payments are due in September, and New York's cash umbrella may not be big enough. The state could, once again, be seriously in the red."
A general fund shortfall of $87 million will have little practical effect on the $134.4 billion-a-year government because officials can shift money from other accounts, but it demonstrates the severity of the state's financial woes.
The general fund slipped into the red for the first time ever in December and could face another cash crunch in September, when the state's on the hook to pay the estimated $2.8 billion in school aid.
Paterson has threatened to call lawmakers back for a summer session if they don't act on a budget soon.
The state's rapidly approaching its Aug. 11 record for the latest budget in its history.
And on the city level, from Crains:
Mayor Michael Bloomberg wants you—to pay up.
As part of plans unveiled Monday by the city to save $500 million over the next four years, the mayor wants to step up pressure on delinquent debtors.
Mr. Bloomberg says he has instructed the Department of Finance to report debtors to credit reporting agencies, hire more outside debt collectors and make it easier for New Yorkers to pay the city what they owe.
The plans are part of an overall strategy to improve the efficiency and reduce the size and waste of city government that could produce long-term annual savings of $500 million a year.