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Actually they can't. They currently have somewhere north of 5 billion in unpaid invoices. Their slow payment on contracts have driven some organizations into
by wombatpm 9y ago
Actually they can't. They currently have somewhere north of 5 billion in unpaid invoices. Their slow payment on contracts have driven some organizations into bankruptcy themselves. Many small business owners I know now refuse to do business with the state because thay can't wait years to be paid.
- dragonwriter 9y ago> Actually they can't. They currently have somewhere north of 5 billion in unpaid invoices. There's a difference between not having the money to pay debts as they come due (which is insolvency) and just paying late by choice, incompetence, or -- as happens with in some jurisdictions with budget delays -- legal prohibition on using existing funds [0] (none of which are insolvency, though they may be default on the individual debts). [0] Which, looked at one way, is a subset of choice, since the actors not making the necessary choice to remove the legal roadblock are the political leadership of the state.
- gamblor956 9y agoDo you have a cite for that? Because the only articles claiming that size of a backlog predate the budget resolution they passed last year after 2 years of no budget. They're currently on track to be out of deficit-spending within 2 or 3 years (possibly this year, if the Trump is to be believed) due to a combination of massive spending cuts ($6 billion in total cuts between 2015 and 2017) and tax revenue increases.