What Happens Few Have Any Money?????
This month, the state will face its worst cash shortage yet, New York Gov. David Paterson said on Wednesday.
In March, the state has $14 billion of payments due, including bills for employee benefits and Medicaid reimbursements, as well as aid for schools and municipalities.
The state originally expected to be $1.4 billion short of the cash needed to make full payments. Now, Paterson expects to be $2.1 billion short, a 50 percent increase.
“That’s probably a greater problem in this administration right now, even than closing the deficit,” Paterson said on Wednesday. The state’s budget gap has grown to $9 billion.
The cash shortfall expected this month raises the prospect of having to repeat a similar scenario from December 2009.
That month, Paterson withheld $750 million, or 15 percent, of scheduled state aid payments, saying he had to do so to keep the state solvent. As planned, the aid was paid in full in January, when more tax receipts flowed into the state’s bank account.
Paterson would have to withhold much more than that this time around.
THE MONEY IS SIMPLY RUNNING OUT......AND FEWER AND FEWER CAN MEET DEBT OBLIGATIONS......AND PRACTICALLY EVERYTHING YOU OWN IS DIRECTLY OR INDIRECTLY VALUED ON THE CAPACITY TO PAY DEBT OBLIGATIONS.