New York has run out of cash and Governor Paterson ordered his budget staff to delay payments to counties, schools, local governments and non-profit service providers until things improve.
During today's speech on Wall Street today, Governor David Paterson and his staff revealed that despite actions taken last week by the state legislature, New York state will essentially end the month of December with a negative billion dollar bank balance.
Tax revenues experienced the worst year to year drop in memory. Sales taxes dropped 11 percent and real estate transfer taxes dropped 430 million dollars. Next year's deficit is now estimated to be between $9-18 billion dollars.
The governor also issued a strong defense of Wall Street, the State's economic engine, saying Wall Street has become an easy target but that New Yorkers should defend it instead of "vilifying" it.
If people criticized "clam chowder in Massachusetts or oil in Texas, they'd run you out of town," Paterson said
Published at 2:09 PM EST on Dec 9, 2009
Copyright Associated Press / NBC New York