State Comptroller Thomas DiNapoli released the the state's June cash report and started the press release with this historic news: "For only the second time in modern history, the state General Fund ended the first quarter of the fiscal year with a negative balance... The state ended the quarter $87.1 million in the red. While tax collections improved from the same period last year, available cash was limited because of $2.9 billion in delayed payments and refunds from 2009-10 that were made in the first quarter."

He worries, "Three and a half months into the state fiscal year the budget still isn’t fully done and there’s no financial plan. Most budget bills have been passed but many revenues are from problematic and non-recurring resources. And nothing has been done to reform the budget process. There are fiscal storm clouds rolling in. 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. Final action on a complete budget is needed and we must continue to closely monitor spending and revenues."

Two bright areas for the state: Income tax and sales tax collections were up by 6%.