While New York ignored creative accounting that led to the financial crisis, the state was busy hiding its own debt.
Comptroller Thomas DiNapoli released a report that suggests the deficit could be much higher than the reported $9 billion. At this point, no one knows:
“New York needs to stop playing games with the deficit,” DiNapoli said. “The state dips into dedicated funds here and shifts money over there, all to cover cash shortfalls and avoid making the difficult decisions needed to align spending with revenues. The end result is the state’s real fiscal condition is impossible to pin down. Every time the game is played, taxpayers lose.”
To lessen the general fund deficit, the state borrowed money from dedicated funds for highways, veterans, and everything else.
If something is broken or decrepit in New York, you can bet it’s funding has gone to the debt furnace.
How New York Hides Its Soaring Deficit >
Redirecting $34.3 billion from a fund designated for health care
Source: New York State Comptroller
Taking 65% of the Highway And Bridge Trust Fund and moving it into the general fund — $22 billion
Source: New York State Comptroller
Sweeping $3.7 billion from other dedicated funds into the general fund
Magenta represents the Environmental Protection Fund.
Source: New York State Comptroller
$850 million sucked out of the Environmental Protection Fund
Source: New York State Comptroller
Next year’s budget shifts $40 million in COSTS to the Environmental Fund (such as park operation)
Source: New York State Comptroller
Taking another $100 million in unspecified sweeps
Wall Street accountants work hard to make the quarter.
Image: http://scams.wikispaces.com/file/view/Bonneteau_-_March%C3%A9_aux_Puces_de_Clignancourt.JPG/78501159/Bonneteau_-_March%C3%A9_aux_Puces_de_Clignancourt.JPG
Source: New York State Comptroller
Hiding around $1.5 billion each year in outstanding short-term loans
Source: New York State Comptroller
Adding to long-term borrowing that costs $1 billion yearly in interest
Source: New York State Comptroller
Funding Indian Gaming, while pretending it pays for itself
Source: New York State Comptroller
Creating special funds like Wine Industry Marketing & Promotion, and then sucking most back to the general fund
Image: Socially Superlative
Source: New York State Comptroller
So how bad is the New York state deficit? No one knows.
Image: AP
Read more: Meet The 899 NY State Employees Who Earn More Than David Paterson
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