Comptroller: Albany is Running Out of Cash and Options
Tuesday, November 17, 2009
New York, NY –
State Comptroller Thomas DiNapoli says New York will run out of cash next month if Albany doesn't act now to close a massive budget deficit. Speaking to business, non-profit and labor leaders in midtown today, DiNapoli said the state will face a $1.4 billion shortfall at some point in December. "It's a very simple notion: Don't spend more money than you have coming in. But that's a simple notion that has escaped us in New York for too many years," DiNapoli says.
The Comptroller says the state has a few options, including delaying school aid payments and borrowing on a short-term basis, but he says neither option is desirable and urged lawmakers to cut spending now.
The legislature is back in session again today trying to find agreement on spending cuts.
DiNapoli says the state faces a $4 billion dollar deficit for the remaining four and-a-half months of this fiscal year, an estimate higher than Governor Paterson’s $3.2 billion.
And New York City agencies are being told to come up with $1.75 billion in savings as Mayor Bloomberg tries to bridge the city’s expected multi-billion dollar deficit.
Budget director Mark Page says in a letter to agency heads that they need to cut their budgets by four percent this fiscal year and eight percent for the next year. Cuts are expected for the Police and Fire Departments, which must cut two percent and then four percent. The Department of Education has to cut 1.5 percent and then four percent.
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