New York City Faces Potential Fiscal Crisis as $10 Billion Deficit Looms
A persistent pandemic-driven downturn has caused revenue from business and personal-income taxes to fall in New York City, while tourism and job losses have yet to recover.
Summary to avoid copyright issues: budget pressure coming from mandated costs, estimated revenue dropping, federal stimulus running out, Wall Street in shambles, labor contracts expiring, labor leaders not looking to delay negotiations, city workforce already low. May need significant budget cuts.
Take a breath everyone.
The doom and gloom and "City is so broke" takes here are pretty premature. City had nearly a billion dollars of surplus last year, 75% of which was federal aid, so we were still in the black even if you take that out
Revenue was over expectations resulting in surpluses to run ahead of expectations this yearhttps://www.osc.state.ny.us/press/releases/2022/06/dinapoli-new-york-city-budget-surplus-pace-grow-another-24-billion-april-projections
We have been funding the rainy dainy funds and they are currently over over 8 billion in reserves (https://www1.nyc.gov/site/omb/reserves.page)
Also of note:
>The state comptroller recently said the city faced a potential budget gap in 2026 of nearly $10 billion.
The estimate of 10 billion off is for 4 years from now in 2026. The article doesn't even really go into what scenario this is under?
Are there challenges looming? YUP!
Is the city responding before it's a castrophe? YUP!
Is it enough? No clue! we are talking estimates years out and lots of things can change.
Should we be getting better services for the money? YUP!
Oh how lovely. Makes me feel quite good about the portion of my paycheck I surrender to the city every month.
With average 1BR rent in Manhattan reaching $5k and almost no unrented apartment, landlords are making bank. Time to tax ‘em
this article is making the mistake of putting a price on swagger