Plush N.Y. playground close to broke

EAST HAMPTON, N.Y., July 25 (UPI) -- East Hampton, a resort on Long Island in New York known for residents like Jerry Seinfeld and Steven Spielberg, is almost out of cash.

The town almost failed to make its payroll recently and at one point had only $900 in available cash, the New York Post reported. Officials estimate it may end the year with a $12 million deficit.

The state has come to the rescue. The state Legislature recently approved a loan of as much as $15 million. That would allow East Hampton to get rid of its deficit over a decade.

With houses valued at $1 million and up and local taxpayers like Seinfeld -- who paid $190,000 on his weekend home -- East Hampton has a healthy tax base. Critics say that officials maintained a small town outlook with practices like having a bookkeeper keep records with no comptroller, the report said.

Town Supervisor William McGintee, a Democrat, agrees that there has been mismanagement. He blames his Republican predecessor but has also decided not to seek a third two-year term.