Intelligence Unit Special Reports Special Events Subscribe Sponsored Departments Follow Us

Twitter Facebook LinkedIn RSS

Cash-poor NY state may issue IOUs like California

Reuters, June 14, 2010

Cash-poor New York state might have to pay its bills with IOUs to avoid the "anarchy in the streets" that could result from a government shutdown, Governor David Paterson said. Like California, which last year issued $2.6 billion of IOUs during a lengthy budget battle, New York might have to pay its bills this way for the first time since the 1980s because the Legislature has not enacted a $135 billion budget more than two months after the deadline.