Last Monday, State Comptroller Tom DiNapoli announced that state taxpayers paid out some $2 million in 2011 because New York State agencies did not pay their bills on time. According to the Comptroller, this was over a half-million dollars more than the state paid in late fees in 2010.
State law requires that vendors be paid within 30 days of invoice. After 30 days, agencies must pay an interest penalty of 2 percent a day.
The Comptroller said:
“State agencies should not waste taxpayer dollars making avoidable interest payments.”
We cannot agree more. We need our public servants to make sure that every taxpayer dollar being spent is providing a benefit to the public. Clearly, some agencies still much room for improvement on that front.