NY state masks deficit by "shuffling" money

[The Northerner]

NEW YORK (Reuters) - For over a decade, New York state has papered over budget deficits and over-spending by "shuffling" money among accounts, siphoning cash from dedicated funds and "abusing" temporary loans, according to a report released on Monday.

The general fund is the main one that credit analysts scrutinize because it excludes federal aid and some dedicated revenues from taxes or fees, such as dollars that flow into environmental or transportation funds, for example.

New York's Democratic Comptroller Thomas DiNapoli said in the report that "the general fund is increasingly providing a distorted view of the state's financial health because money is shifted in and out of this account."

This strategy obscures the state's deficit, he said.

The current budget deficit for New York state now stands at $9 billion.

Read more: http://ca.news.yahoo.com/s/reuters/100405/us/politics_us_newyorkstate_budget