Saturday, June 12, 2010

N.Y. State "classic budgetary sleight-of-hand"

by Bill McBride on 6/12/2010 08:38:00 AM

From Danny Hakim at the NY Times: New York Plan Makes Fund Both Borrower and Lender (ht jb)

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.
Oh my ...