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 FOR RELEASE:

Immediately
June 11, 2010



Statement from State Comptroller Thomas P. DiNapoli on Possible State Government Shutdown

"Stop talking about a government shut down and get to work and pass a budget. Instead of playing games with extender bills, it's time to get down to the real task at hand: passing a budget that makes the hard choices about spending that need to be made to put New York back on the road to fiscal sanity. That’s the responsible thing to do.

"Last week there was some progress. But 'some progress' two and a half months into the fiscal year at a time of crisis is totally unacceptable. New Yorkers who are struggling to pay their bills and simply make ends meet want results, not political theatrics."

DiNapoli identified the following potential impacts of a state government shutdown:

  • Unemployment: An average of $190 million in weekly unemployment benefits and other benefits for 565,000 recipients would not be paid;
  • Businesses: Would not get paid for goods and services provided after June 13; state agencies may be able to use previously appropriated funds to pay some vendors if the state Division of the Budget has certified funds for spending;
  • Municipalities: Local assistance payments for children and family services (welfare, food stamps, etc.) and local transportation projects would be frozen;
  • Schools: Would not get paid for individual claims for programs such as full-day kindergarten, education of homeless children and bus driver training;
  • State Workforce: 153,000 state employees would not get paid on June 23 as part of the state’s administrative payroll, which totals $270 million (SUNY and CUNY employees will get paid);
  • State Programs: Most would likely be temporarily suspended;
  • Hospitals/Other Health Care Institutions: Would get paid because the Legislature and Executive passed a full year of appropriations;
  • Bond Holders: Would get paid because legislation was passed to cover New York’s debt and interest payments;
  • State Retirees: Would still get their monthly retirement checks because their payments are not subject to legislative or executive approval; and
  • Tax and Other Refunds: Would be paid since they are a return of revenue and do not need an appropriation.

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