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Task force warns of NY budget meltdown. “The nonpartisan State Budget Crisis Task Force just released a report stating that New York’s fiscal accounting is ‘papered over with gimmicks’ and that the state will face a serious budget crisis unless it changes course quickly.” That means the state is going to face a serious budget crisis, then. Join the club.

Contributed on December 21, 2012 by Bonfire of the Absurdities, who has submitted 2784 posts.

{ 7 comments… read them below or add one }

Martin December 21, 2012 at 3:21 pm

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Mead’s report cites a “new borrowing mechanism” which simply means that municipalities are foregoing contributions to the state pension fund by adding to their future liabilities to that fund. They’re doing this in the hope that the returns on the fund portfolio and future tax receipts will rise high enough to allow them to pay those increased future liabilities. It’s the fiscal equivalent of the “negative amortization loans” which worsened the housing boom and bust. Watch their bond ratings fall in the short term and expect default in the long term.

sa_rose December 21, 2012 at 9:47 pm

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This will work out just fine when people actually want their pensio money. Sounds like th “lockbox” of IOU’s for Social Security. Look how well THAT’S turning out!

StrinaM December 21, 2012 at 10:40 pm

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I’m sure Gov Cuomo’s forced Gun sell-back program will fix the state’s fiscal problems.

poppajoe49 December 22, 2012 at 5:53 am

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Seems like the people of NY didn’t learn from the mistake of having daddy Cuomo as governor forever, they had to hire baby Cuomo to take his place.
Perhaps they forgot how Pataki ran the state without the bookkeeping gimmics. But then, Pataki was a Republican.

flashingscotsman December 22, 2012 at 9:56 am

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Oh, the horror of it!

Progressive Hemrrhoid December 22, 2012 at 6:01 am

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NY is going to be the Northeastern equivalent of California here soon, people are already leaving in droves, and taking their tax dollars and jobs with them.

flashingscotsman December 22, 2012 at 10:43 am

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It’s just so damn cold in North Dakota, where the jobs are going.