State pays big-time for being tardy
ALBANY — The state’s inability to pay its bills on time cost taxpayers nearly $2 million during the past budget year, a new report found.
State Controller Thomas DiNapoli said state agencies paid $1.9 million in interest on late payments to vendors during the 2011-12 fiscal year, an increase of 38% from the previous year.
“State agencies should not waste taxpayer dollars making avoidable interest payments," DiNapoli said.
The biggest offender, according to DiNapoli, was the Health Department, with $1.3 million in interest payments, a whopping 130% increase from the prior year.
The State University of New York had the secondhighest figure, $109,533, up 35% from the 2010-11 budget year.
Cuomo administration officials said they are working on reforms to streamline payment procedures.
“When it comes to the Department of Health, 99.3% of its contracts are paid on time,” added Josh Vlasto, a spokesman for Gov. Cuomo.
State finance law requires agencies to pay vendors within 30 days of receiving an invoice.
After 30 days, agencies must pay an interest penalty of 2% a day.