Thread: Paterson: 'New York Has Run Out Of Cash'

Paterson: 'New York Has Run Out Of Cash'

MICHAEL VIRTANEN
12/ 9/09 04:48 PM

ALBANY, N.Y. — Gov. David Paterson said Wednesday 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.

"I am directing the Division of the Budget to limit payments so that we will have the cash to pay our debts at the end of December," Paterson said. "I will continue to withhold payments until this economy is leveled off."

"Now New York has run out of cash," he said. "You can't spend money that you don't have."

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.

In his executive budget proposal next year, Paterson could propose making them permanent.

"We've had a revenue collapse over the last 24 to 36 month period," Megna said. "The state's cash position is at its weakest point in recent history."

Last week, after lawmakers agreed to cuts of about $2.8 billion, Paterson said it wouldn't be enough. He warned then of reduced and delayed payments, targeting school aid and funding to hospitals.

Timothy Kremer, executive director of the New York State School Boards Association, said they've asked their roughly 700 members to assess the impact if approximately $300 million in school aid is delayed or permanently cut, which Paterson had proposed in November. Lawmakers rejected the cut, which would be a roughly 1.5 percent reduction across the board.

"We think it's inappropriate and likely illegal for him to unilaterally act in that way," Kremer said. Several organizations, including his association, may seek a court order to block it, he said.

Stephen Acquario, executive director of the New York State Association of Counties, said their reimbursements for providing state-mandated services like public health, mental hygiene and other programs are already lagging by months and in some cases a year or more. "Many counties don't have the available fund balance to cover the state's bills," he said.

http://www.huffingtonpost.com/2009/12/0 ... 86403.html

Oh gee, that's so sad. But wait, what about all that "contribution from illegal aliens" and all that "free trade that's good for America" and all that high roller "Wall Street" Jazz? Oops! Not so "contributory" after all huh, not so "good for America" when pay day comes, is it? Nope.

All That Jazz flew right out your window didn't it? Yep. Something any third-grader could have told you buffoons.

But Wait !!! I thought immigrants propped up metro areas.

"Despite a slowdown fueled by fewer jobs in construction and service industries, immigrants are helping metro areas such as Chicago, Miami and New York make up for the net loss of residents to other parts of the USA."



This just can't be! The "immigrants" are paying their taxes in New York aren't they??

"Now New York has run out of cash," he said. "You can't spend money that you don't have."


Absolutely right, as much as i don't like Gov.Patterson, this mess was dumped in his lap. People and Businesses have been fleeing N.Y. in record numbers for the last 2 years. Compound that with the influx of record numbers of Illegal Aliens and their Anchor Spawn draining State, County and Local coffers. New York can not continue like this and survive much longer.

This is the systematic destruction of the United States of America. It is done through economics rather than bombs, cannon, armor, and troops. Besides it saves the structures for the new owners whom-ever that may be.

Originally Posted by Hylander_1314

This is the systematic destruction of the United States of America. It is done through economics rather than bombs, cannon, armor, and troops. Besides it saves the structures for the new owners whom-ever that may be.

Exactly, like locust, they drain all the resources and move on when they think things will collaspe like in California. Illegals are also leaving California in droves and heading to other states that they can exploit.