The state’s general fund ended a quarter in deficit for only the second time in modern history, state Comptroller Thomas DiNapoli just announced.

The government’s largest spending account fell $87.1 million short at the end of last month, DiNapoli said. He attributed gap, which came despite improved tax collections, to Gov. Paterson’s decision in March to carry over $2.9 billion in delayed payments and refunds into the current fiscal year.

Such a small shortfall in the state’s $134.4 billion budget has little practical impact because the state can borrow money from other accounts, but it’s evidence of how close to margins the treasury is.

The general fund also posted deficit at the end of December. Paterson has warned the state could face another cash crunch in September and has threatened to call lawmakers into special session if they don’t return to Albany to put the final touches on a budget – now three months over due.

“There are fiscal storm clouds rolling in,” DiNapoli said. “The next school aid payments are due in September, and New York’s cash umbrella may not be big enough. The state could, once again, be seriously in the red.”

(Source: NY Post)