Paterson to Withhold $750 Million in State Payments
Monday, December 14, 2009
New York, NY –
Gov. David Paterson is unilaterally reducing $750 million in state payments due tomorrow, and schools are set to be hit the hardest.
The governor says the measures are needed because of the failure of the legislature to adequately address the $3.2 billion state deficit. With this latest move, the governor is withholding $146 million in aid to schools this week, and another $436 million that would've been paid later this month.
"Most of these school districts have reserve funds that will absorb these cuts, and whenever they object you never hear them say they don't have the money," Paterson says. "Only five percent of the school districts don't have the money, and that's going to be a problem.
Aside from the school payments, Paterson is withholding about $120 million meant for cities and counties. He says some of those payments may eventually be made if the state can generate enough in tax revenues. But he's also threatening to withhold other payments in order to keep the state on solid financial footing.
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