New York State’s fiscal lunacy

A few items from Insty make you wonder if New York state politicians routinely have LSD mixed in with their bottled water:

CHANGE: Cash-poor NY state may issue IOUs like California.

Basically, New York state will now pay in virtual money. But you ain’t seen nothing yet:

A PENSION SHELL GAME: “Gov. David A. Paterson and legislative leaders have tentatively agreed to allow the state and municipalities to borrow nearly $6 billion to help them make their required annual payments to the state pension fund. And, in classic budgetary sleight-of-hand, they will borrow the money to make the payments to the pension fund — from the same pension fund.”

Is your head hurting yet? But Roger Kimball has a novel suggestion:

ROGER KIMBALL: The age of the IOU, or chickens/roost, and “anarchy literally.” “And here’s a policy suggestion that I offer free and for nothing. If New York offers its citizens IOUs instead cash, citizens should do the same come April. After wading through the pages of gibberish that our legislators have thoughtfully provided under the rubric of your tax returns, they should enter the amount owed, sign on the dotted line, and enclose an IOU instead of a check. If an irresponsible and fiscally incontinent state can hold on to your money (and you should never forget that it is your money), then you are justified in practicing a little self-defense and treating the state with a little of the contempt with which it treats you. If five or ten or a hundred people did it, it wouldn’t make much difference. What if five or ten thousand people did?”


2 thoughts on “New York State’s fiscal lunacy

  1. It gets even worse, as the Democrats in NY state won’t allow for drilling or exploration for natural gas along the Marcellus shale upstate. The enviormentalists swear up and down hydrofracture drilling will poison the drinking water for years to come, yet the same procedure has been in use for at least the last three years along the northern tier of Pennsylvania….I’m not up on my northern tier of Pennsylvania current events, but I haven’t heard much about entire towns in the Northern reaches of the keystone state growing ill or dropping dead from all the toxic drinking water there.

    Granted oil and natural gas and energy exploration companies aren’t the most popular things right now, but the GOP needs to run on the fact that simply opening up the exploration process in the empire state could create plenty of private sector jobs….and the Dems have been dragging their feet if not ouright obstructing the process since other areas of the Marcellus Shale opened up for drilling.

    Hell….I know that one small railway in Northern PA went from one 50-year old switch engine rated at 800 HP and maybe 500 cars a year to FOUR behemoth SD40-2s (rated @ 3000 HP each) to handle the 60 cars each week of hydrofracture sand that’s needed for the nearby gas wells.

    How’s that for an economic indicator?

  2. OK, I don’t understand this. NYS is allowing itself and municipalities in the State to borrow money to make mandatory pension fund payments FROM THE SAME PENSION FUND THEY ARE MAKING THE PAYMENTS TO?!
    That has to be illegal. It’s nothing more than a shell game. At least NYS ought to do what the Feds did when they stole all that money from Social Security – leave NYS (or in the case of SS, US Treasury) Bonds to the Pension fund. Not that the bonds are worth all that much (NYS, not US) but it’s better than what NYS is doing!

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