{"id":79900,"date":"2009-12-13T20:27:00","date_gmt":"2009-12-14T01:27:00","guid":{"rendered":"http:\/\/www.businessinsider.com\/governor-paterson-delays-payments-to-schools-2009-12"},"modified":"2009-12-13T20:27:00","modified_gmt":"2009-12-14T01:27:00","slug":"governor-paterson-goes-hoover-delays-payments-to-local-schools-to-keep-state-solvent","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/79900","title":{"rendered":"Governor Paterson Goes Hoover: Delays Payments To Local Schools To Keep State Solvent"},"content":{"rendered":"

As Paul Krugman put it, states that cut spending in a time of recession are like 50 little Herbert Hoovers<\/a>.<\/p>\n

Well, welcome to New York State, whose governor just slashed payments to schools and local authorities in a bid to keep the state solvent.<\/p>\n

DailyNews<\/a>: New York City will lose at least $84 million in funding under Gov. Paterson<\/a>‘s plan to withhold  payments to keep the state afloat this month.<\/p>\n

Saying the “day of reckoning” for cash-strapped New York<\/a> state is here, Paterson announced Sunday   he is unilaterally withholding 10% of nearly $1.9 billion in school and municipal aid funding that was to be paid Tuesday.<\/p>\n

For the city that means its school aid payment will be about $60 million short and its municipal assistance payment $23.9 million lower than expected, Paterson’s budget office said.<\/p>\n

\n<\/embed><\/object>\n<\/p>\n

Join the conversation about this story »<\/a><\/p>\n

See Also:<\/b><\/p>\n