The state’s financial situation, on paper, is better than it was last year at this time.
The amount the state owes to all creditors, as of the close of Fiscal Year 2013, is $6.1 billion – down from $7.5 billion at the end of the 2012 fiscal year. But state Comptroller Judy Baar Topinka says this situation will get worse.
“We are now in a new fiscal year, and by the time we get through with the bills that we have to pay and the fact that we have no money to pay them with, then we will probably by August be at about 7 (billion); by November or December we’ll be around 9 (billion), which is where we were last year,” she said.
The state is actually less than a month behind in bill-paying – the oldest invoices in the comptroller’s office are from June 3 – but Topinka says some of the 73,184 creditors won’t get paid for six months or a year, depending on how money comes in.