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December 9, 2009

Atlantic Yards YES! New York State's school kids NO!!

New York State has one set of rules for Bruce Ratner and another set of rules for everybody else.

Crain's NY Business, Citing $1B shortfall, Gov. warns schools

Gov. David Paterson warned the state will begin withholding payments to localities and school districts in light of an expected $1 billion shortfall in the state operating fund.

New York state's main operating fund will have a negative balance of $1 billion by the end of this month, even if the state exhausts its reserves, officials announced Wednesday.

State Budget Director Robert Megna revealed the shortfall as he introduced Gov. David Paterson, who delivered a speech renewing his call for the Legislature to make additional spending cuts. Mr. Megna said even if the state empties its $1.5 billion rainy day fund and delays a $1 billion payment to the state pension fund, its general fund would still end the month $1 billion short.

Addressing a Wall Street audience at the Museum of American Finance, Mr. Paterson said that to avoid the shortfall, he would delay payments to localities and school districts that were promised funds in the state budget he and the Legislature agreed to last spring. “I will probably be sued for this, but I will not let Bruce Ratner New York state run out of money on my watch,” the governor said.

NoLandGrab: The "Museum of American Finance?" Perhaps they can open a wing for the Brooklyn Arena Local Development Corporation should Bruce Ratner fail to sell his bonds by December 31st.

Additional coverage...

Huffington Post, Paterson: 'New York Has Run Out Of Cash'

"I am directing the Division of the Budget to limit payments so that we will have the cash to pay our debts at the end of December," Paterson said. "I will continue to withhold payments until this economy is leveled off."

"Now New York has run out of cash," he said. "You can't spend money that you don't have."

NLG: Unless you're spending it on a basketball arena that nobody — except Bruce Ratner — needs.

Posted by eric at December 9, 2009 6:06 PM