Thursday, March 18, 2010

$2 Billion Short.

The reason that New York State has postponed mailing out refund checks to its taxpaying citizenry is that it is staring down the barrel of a $2 billion cash shortfall. The day of state insolvency is thus postponed to May 31, which is the last day the tax refund checks can be mailed before the state has to start paying interest on that money. But the math doesn't change.