July 10. States’ woes

Just a couple of quick excerpts from State Comptrollers on budget difficulties.  Illinois is quite frank and stark, so I decided to check a few others.  While the Fed’l gov’t paints a rosy picture of improvement, the guys in the trenches are rather glum.
–Alex Manzara
 
 
Illinois Comptroller Dan Hynes
http://www.ioc.state.il.us/news/isp.cfm
 
an Open Letter to IL Service Providers…excerpt

Your commitment and perseverance stands in stark contrast to the state’s actions over the past few years. Providers have been placed in an extremely vulnerable situation as you were subjected to needless anxiety during budgetary stalemates that did not allow you to develop your own budgets and left you wondering what program levels would be funded and whether service terminations and staff reductions would be necessary. Now after too many of you have made painful decisions and sacrifices, the state is months behind in meeting its financial obligations to you, so I don’t blame you for being angry. You have every right to be.

The level of unpaid obligations in my office stands at $4.4 billion and will continue to grow as there is simply insufficient revenues to meet all the demands. The state has borrowed $2.25 billion that must be paid back within the next six months. There is a new proposal to borrow $500 million more, a sum that I believe will simply exacerbate the existing problem of paying back the money we already owe, and more seriously, give false hope to all of you awaiting payments from the state. I refuse to agree to a “solution” that addresses only 5% of the problem and even then only for the very short term at the risk of creating a bigger problem No matter what else you may hear about the benefits of more borrowing, that is my honest assessment.

 
and CA Comptroller John Chiang
http://www.sco.ca.gov/Files-EO/Controller/06-15-10letter.pdf
The State’s General Fund continues to have a zero cash balance.  However, the State is temporarily able to meet all of its obligations by borrowing heavily from approx $20 billion in special funds.
http://www.sco.ca.gov/July_2010_payments.html
excerpt:
As the State of California’s chief fiscal officer, I have created this new Web page to outline what bills my office can and cannot pay during the month of July 2010 until a State budget is enacted for the 2010-11 fiscal year beginning July 1. Please be assured that I will continue to do everything within my authority to continue to provide payments for essential services. I also invite you to read the letter  on this subject that I have written to the Governor and Legislators.
 
And here’s NY (let’s stick our head in the sand)
http://www.osc.state.ny.us/press/releases/july10/070110b.htm
“In the face of fiscal uncertainty, New Yorkers need action. Stay in Albany and get the job done.”
 
Go to Florida page (this is the top page for a Google Search of “Florida State Comptroller”) and the lead banner is how to get a list of Florida Foreclosures
http://www.stateofflorida.com/Portal/DesktopDefault.aspx?tabid=13
 
compare and contrast with US Treasurer Tim Geithner…(interview on PBS, July 6, 2010)
…the economy is healing, it’s getting stronger and I’m very confident we’re going to continue to grow and continue to make progress – not just repairing the damage caused by this crisis but building a stronger economy that’s going to create better opportunities for all Americans.
JIM LEHRER: But it doesn’t seem that way. All the current things —

Posted on July 31, 2010 at 8:47 am by alexmanzara · Permalink
In: Eurodollar Options

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