Someone here will explain in better terms that I can, but: in the event that a team does not meet the salary floor, the team must pay the remaining balance to its players. In other words, if we do not meet the salary floor, the team still has to pay that money out, except that the money gets distributed among existing players.
There's no reason to waste a pick on a 1 year rental of Paul George. And frankly, Indiana would hang up the phone laughing if we only offered #10. There's lots of other free agents we can blow money on if needed.