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PATERSON: NY HAS RUN OUT OF CASH
Huffington Post - Gov. David Paterson said that New York has run out of cash and he's directing budget officials to reduce state aid payments to schools, local governments and nonprofit service providers until things improve.Speaking at the Museum of American Finance in Manhattan, Paterson said he'll probably get sued, but he won't let the state run out of money on his watch...
Budget Director Robert Megna said the state faces a shortfall of more than $1 billion in the general fund at the end of December, which would be a first for New York.
Other state funds can be tapped to help close that gap, Megna said, but even using all $1.2 billion of rainy day reserves and delaying a pension fund payment will leave the margin "razor thin."
Rather than risking some setback that would force hasty cuts, Megna said the administration is cutting spending in an orderly fashion. The Budget Division plans to detail temporary cuts this week, he said.
Budget Director Robert Megna said the state faces a shortfall of more than $1 billion in the general fund at the end of December, which would be a first for New York.
Other state funds can be tapped to help close that gap, Megna said, but even using all $1.2 billion of rainy day reserves and delaying a pension fund payment will leave the margin "razor thin."
Rather than risking some setback that would force hasty cuts, Megna said the administration is cutting spending in an orderly fashion. The Budget Division plans to detail temporary cuts this week, he said.
1 Comments:
Too bad New York cannot print its own money. Then, like the US government, they would never go broke.
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