NY Nearly Goes Broke Again, Delays Paying Bills

Reuters ^ | June 2, 2010 | Staff

[C19fan]

New York state delayed paying $2.5 billion of bills as a short-term way of staying solvent but its cash crunch could get even worse in August and September, Budget Director Robert Megna said on Tuesday.

"Had we not done that, I think we would have been close to broke," Megna told reporters in Albany. This is the third time since December the cash-poor state has withheld funds.

[C19fan]

Interesting race between CA and NY to see who hits bottom first.

[JPG]

Why not just impose another massive tax increase? That’s always worked before. /s

[Brad from Tennessee]

When New York goes flat broke they automatically qualify to boycott Arizona.

[poindexter]

They need more illegal aliens to get that economy built up.

[travlnmn41]

Chasing out the rich people (and GLOATING about it, like they did with Rush Limbaugh) is a great strategy.

[Rum Tum Tugger]

If NY can't pay its bills, it is broke.

Hoarding what little cash it has may make NY think it's not broke, but it's broke all right.

[mainsail that]

[WOBBLY BOB]

CA borders the 3rd world so it’ll crash 1st.

[businessprofessor]

Who is NY state stiffing? It seems to me that delaying payment is a form of default. Will NY state pay interest on the delayed payments? In California, taxpayers got stiffed with refunds delayed for months.

[BooBoo1000]

who cares,that state has spent money they didn't have for years,so what is the big deal. Raise the
taxes enough to cover any shortage;