just another example of why Republicans are calling on Democrats to come to the
negotiating table and help pass a balanced budget, the Comptroller announced
this week that based on expected revenues and mandated expenditures, the state
will fall short of what it needs to make its pension payment next month.
state’s monthly pension payment of $560 million is the largest consistent
expenditure throughout the year. Because November’s full pension payment won’t
be invested now due to a lack of funds, that could negatively impact the
overall investment of the pension system, which could lead to future increases
in state contributions. Munger reiterated, however, that retiree swill continue
to receive their pension checks uninterrupted.
Comptroller, like Republican Senators, have been warning that the unbalanced
spending approach that Democrats have passed in the Legislature is a recipe for
disaster, resulting in cash shortages, more unpaid bills, and extended payment
delays. She says that the state is required to pay at last year’s levels, even
though the state is expected to bring in $5 billion less this fiscal year.
says the consequences of not passing a balanced budget are severe, and will
grow more severe with each day.
week, the backlog of unpaid bills reached $6.4 billion. Munger says the state
is on track to have $8.5 billion in unpaid bills by the end of the calendar