This is an outrageous move, a true tolling of the bell of fiscal doom for the Empire State. Wait and see if it is more than a one day story in one newspaper as it is difficult to understand and most of the MSM will be bored by the idea that such accounting measures mean much to the public.
But it signals the end game for the finances of the biggest states. The remorseless march of the promises made to public employee unions continues to chew up state revenues and there is no way out except breach of those contracts or a vast reduction in the size of the state governments.
The impact in New York should be fairly immediate. How long will investors buy bonds from a state that is trying to in essence pay its debts with IOUs?