and ny takes another one in the........
Posted on 11/15/2009 9:05:45 AM PST by Behind Liberal Lines
If Gov. David Paterson and state legislators continue to do nothing about the way they spend money, the state’s general bank account will be $1 billion short at the end of December, according to state Comptroller Thomas DiNapoli, the man who writes the checks....
The state has already dipped into its short-term investment pool, or cash reserves, for $5 billion. There is not enough left to raid.
It is an option for the state to borrow money, but DiNapoli says the state has borrowed enough for cash-flow emergencies.
In fact, the state already owes $10.4 billion to bondholders for the times it borrowed money for operating expenses. That’s 18 percent of the total $57 billion in state debt.
Borrowing for spending money limits the state’s ability to borrow for buildings, construction and equipment — the kinds of purchases a state normally finances with long-term bonds.
The state has limits on borrowing, but all it takes to raise those limits is an act of the state legislature. The state also has found a way around the Constitutional requirement that new debt be approved by voters. Lawmakers simply direct public authorities to issue bonds for them.
There is no science about when too much borrowing could threaten state bond ratings, DiNapoli said.
DiNapoli and others say the only way to put the state on solid financial ground is for the state to stop spending more money than it raises.
(Excerpt) Read more at syracuse.com ...
New Yorkers?
Look west to California, your *future*. LOL
IOW, they don't have limits. Screw the taxpayers!
Good. Hopefully the GOP will pick up the Senate Seat, the Governors Mansion and strengthen it’s hand in both houses.
But they needn't worry. Once the trial begins for the foreign born, foreign captured, islamic muslim terrorists, there'll be plenty of money coming into the "circus" that once was NYC.
That’s ok. This transfer of terrorists will demand another stimulus bill so a few hundred billion can be porked into the state.
I see a ten to fifteen percent state sales tax in NYs future. In another decade, that state will be nothing but NYC and wilderness.
Related snippet
Manhattan Institute Says “New York must declare a financial emergency”
E.J. McMahon, director at the Manhattan Institute says New York deficits amount to financial emergency.
New York state’s huge and growing budget gap requires government to take drastic actions to correct it, said E.J. McMahon, director of the Empire Center for New York State Policy at the Manhattan Institute.
McMahon spoke to the Council of Industry, a regional trade group, Friday at the Powelton Club.
He charted flat revenues against expected spending if nothing is changed and showed a $20 billion gap looming by 2012-13.
McMahon said the state must declare a financial emergency and enact a statutory freeze on public-sector wages for at least three years. State law allows this and enables contracts to be voided, he said. It would save at the rate of $2 billion a year for state, local and school taxpayers.
McMahon also called for shutting down the state’s pension systems to new entrants and giving them instead a plan similar to one of the alternatives for the State University system, in which a stable amount is contributed by the state and employees can add their own.
http://globaleconomicanalysis.blogspot.com/
Just arbitrarily increase the withholdings of workers giving you New Yorkers an interest free loan. I hear that’s the rage out in Cali.
New York and California think they’ll get “bailed out” - but the country’s BROKE. Even if a bailout is started, reality will stop it before Obama’s out of office...
Lynn Sweet, Sun-Times Washingon Bureau Chief"
WASHINGTON--A nearly empty state prison in northwestern Illinois has emerged as a possible site to house detainees transferred from the Guantanamo Bay military prison in Cuba, the Obama White House told the Chicago Sun-Times on Saturday.
Gov. Quinn and Obama discussed the federal purchase of the Thomson Correctional Center when Quinn was in Washington on Nov. 4 and visited the White House. The Chicago Sun-Times has learned that Quinn and Sen. Dick Durbin (D-Ill.) will outline proposals for the future of the prison ...
Does anyone believe the Dem Congress won’t bail-out NYC?
Just tax the “rich” and the “evil corporations”. That’s the tried and true Democrat formula, is it not?
Like Reagan said whatever is taxed more you get less of it. Stupid leftists never learn this principle and the radical ones would live in squalor instead. Move over Michigan-- ya got company coming soon.
and ny takes another one in the........
Okay, who hired a racist, right wing extremist to be comptroller?
You got it, J.
Just like C&T & quite possibly the Healthcare debacle and perhaps even the amnesty sham. After TARP et al? There's simply *nothing* left. Nada.
Even cranking the printing presses up won't help because there's no one who will or wants to buy our debt. LOL!!!
Fixes zerO's socialistic clock right there & then, huh. LOL
"Even if a bailout is started, reality will stop it before Obama’s out of office..."
Right again, my friend. :^)
Sometimes these things take care of themselves.
This out of control, in 'yo face debt business is a splendid example of [that] truism in action, too. ;^)
“Next *month*, eh?
Oh my, the piper’s comin’ to be paid real soon.”
Merry Christmas, ah, I mean Happy Holidays NY!
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