New York Has Run Out Of Cash ALBANY, N.Y. — Gov. David Paterson said Wednesday that New York has run out of cash and he's directing budget officials to reduce state aid payments to schools, local governments and nonprofit service providers until things improve. Speaking at the Museum of American Finance in Manhattan, Paterson said he'll probably get sued, but he won't let the state run out of money on his watch. "I am directing the Division of the Budget to limit payments so that we will have the cash to pay our debts at the end of December," Paterson said. "I will continue to withhold payments until this economy is leveled off." "Now New York has run out of cash," he said. "You can't spend money that you don't have." Budget Director Robert Megna said the state faces a shortfall of more than $1 billion in the general fund at the end of December, which would be a first for New York. Paterson: 'New York Has Run Out Of Cash' ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Sadly, New York has now joined California in having to seriously cut back on funding for schools and other public services. We are in a Serious Depression that is growing, like a Big Black Volcanic Cloud covering the Earth. It is slowly suffocating us and we are dying. State after state, city after city and family after family.