DiNapoli: State Could Run Short of Cash
Releases Final Closing Numbers for Last State Fiscal Year, Warns of Cash Crunch
State Comptroller Thomas P. DiNapoli today reported that New York State finished the 2009-10 fiscal year with a General Fund balance of $2.3 billion. The state only ended the fiscal year in the black because the Governor delayed $2.9 billion in payments. By pushing these payments into the new fiscal year, the state could run out of money in June.
“The state is starting the new fiscal year the way we ended the old one,” DiNapoli said. “The state’s finances are very shaky. Big bills are piling up, and there may not be enough cash to cover them. We need the Governor and the Legislature to agree on a realistic budget that aligns revenue with spending and isn’t a replay of last year’s buy-time budget. Without a responsible spending plan, our cash shortfalls may be much worse than last year.”
The state Division of the Budget projects the General Fund will end the months of May, June, July and August with a negative balance. This is unprecedented in New York’s history, indicating growing fiscal stress and historically low cash flow levels. The state’s General Fund ended December with a negative cash balance of $577 million -- the first time since 1981 that the General Fund ended the month with a negative balance.
Highlights of the state’s cash position in the General Fund at the end of the fiscal year:
- Through March 31, total General Fund revenues, including transfers, totaled $52.6 billion. Total revenues were $156.4 million below projections and $1.2 billion lower than last year.
- General Fund tax revenue totaled $37.1 billion, which was $1.2 billion less than last year, primarily due to lower personal income tax collections.
- General Fund spending, including transfers, was $52.2 billion through March 31. This was $1.1 billion below projections and $2.4 billion, or 4.4 percent, lower than last year. Much of this reflects the shift of spending by Governor into the next fiscal year.
Click here for a copy of the report.
Click here for a copy of the March 2010 Cash Report.