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Virus Forces N.Y.C. to Consider Tactic That Nearly Led to Ruin in ’75 Virus Forces N.Y.C. to Consider Tactic That Nearly Led to Ruin in ’75
(about 11 hours later)
The coronavirus pandemic has plunged New York City into the most dire fiscal crisis it has faced in generations. More than 900,000 people have lost their jobs since February, and thousands of businesses have closed.The coronavirus pandemic has plunged New York City into the most dire fiscal crisis it has faced in generations. More than 900,000 people have lost their jobs since February, and thousands of businesses have closed.
The streets remain empty of workers and visitors: Nearly 117,000 people filed new unemployment claims in the second week of May, a staggering 2,206 percent increase from the previous year. Tourism, which generates roughly $70 billion a year in economic activity, has disappeared.The streets remain empty of workers and visitors: Nearly 117,000 people filed new unemployment claims in the second week of May, a staggering 2,206 percent increase from the previous year. Tourism, which generates roughly $70 billion a year in economic activity, has disappeared.
The real estate market is stagnant; sales are projected to be down by a third. People are not spending money; sales tax revenue is expected to drop by $1 billion — part of an anticipated $9 billion shortfall in city tax revenue that could force drastic cuts to essential city services.The real estate market is stagnant; sales are projected to be down by a third. People are not spending money; sales tax revenue is expected to drop by $1 billion — part of an anticipated $9 billion shortfall in city tax revenue that could force drastic cuts to essential city services.
The grim outlook has forced top officials to contemplate a maneuver that has been disparaged ever since it brought New York to disrepair and the brink of bankruptcy in the 1970s: allowing the city to borrow billions of dollars to pay for its basic operating expenses.The grim outlook has forced top officials to contemplate a maneuver that has been disparaged ever since it brought New York to disrepair and the brink of bankruptcy in the 1970s: allowing the city to borrow billions of dollars to pay for its basic operating expenses.
Numerous fiscal experts and public officials, including Gov. Andrew M. Cuomo, are leery of giving the city permission to solve its budget problems by taking on significant debt, sensitive to the reckless borrowing that began more than 50 years ago under Mayor Robert F. Wagner and accelerated under the city’s next two mayors, John V. Lindsay and Abraham D. Beame.Numerous fiscal experts and public officials, including Gov. Andrew M. Cuomo, are leery of giving the city permission to solve its budget problems by taking on significant debt, sensitive to the reckless borrowing that began more than 50 years ago under Mayor Robert F. Wagner and accelerated under the city’s next two mayors, John V. Lindsay and Abraham D. Beame.
The shortsighted economic strategy — Mr. Wagner blithely called it a “borrow now, repay later” philosophy — was one reason New York City reached the brink of bankruptcy in 1975, leading to the creation of the New York State Financial Control Board, which was given broad oversight of the city’s financial management.The shortsighted economic strategy — Mr. Wagner blithely called it a “borrow now, repay later” philosophy — was one reason New York City reached the brink of bankruptcy in 1975, leading to the creation of the New York State Financial Control Board, which was given broad oversight of the city’s financial management.
Mayor Bill de Blasio, who has asked legislative leaders to grant him permission to issue bonds to cover the city’s operating costs, has said he would only do so as a “last resort.”Mayor Bill de Blasio, who has asked legislative leaders to grant him permission to issue bonds to cover the city’s operating costs, has said he would only do so as a “last resort.”
Doing so, however, has increasingly become a real possibility: Legislative leaders, returning this week from a nearly two-month hiatus to vote on a raft of coronavirus-related bills, are discussing the issue with the governor’s office and city officials.Doing so, however, has increasingly become a real possibility: Legislative leaders, returning this week from a nearly two-month hiatus to vote on a raft of coronavirus-related bills, are discussing the issue with the governor’s office and city officials.
“What do you do if you don’t have the option of some amount of borrowing? You have to do massive cuts, massive cuts to all city agencies,” Mr. de Blasio said on Thursday. “That will undermine any possibility of the right kind of restart and recovery. So, borrowing the right way, it makes sense.”“What do you do if you don’t have the option of some amount of borrowing? You have to do massive cuts, massive cuts to all city agencies,” Mr. de Blasio said on Thursday. “That will undermine any possibility of the right kind of restart and recovery. So, borrowing the right way, it makes sense.”
The city is far from alone in confronting an economic collapse. New York State is expecting as much as $13 billion less in tax revenue this year; California faces a $54 billion budget deficit, and Los Angeles has a 24 percent unemployment rate. Nine states, including New York and California, have borrowed from the federal government to reinforce their unemployment insurance trust funds.The city is far from alone in confronting an economic collapse. New York State is expecting as much as $13 billion less in tax revenue this year; California faces a $54 billion budget deficit, and Los Angeles has a 24 percent unemployment rate. Nine states, including New York and California, have borrowed from the federal government to reinforce their unemployment insurance trust funds.
And in New York State’s recently passed budget, lawmakers included a provision that gave Mr. Cuomo the ability to borrow up to $11 billion, giving budget officials increased flexibility amid uncertain revenue forecasts. State Senator Liz Krueger, chairwoman of the Senate Finance Committee, said the city is merely asking for the same leeway that the Legislature recently granted the governor.And in New York State’s recently passed budget, lawmakers included a provision that gave Mr. Cuomo the ability to borrow up to $11 billion, giving budget officials increased flexibility amid uncertain revenue forecasts. State Senator Liz Krueger, chairwoman of the Senate Finance Committee, said the city is merely asking for the same leeway that the Legislature recently granted the governor.
But New York City’s problems, and its request to potentially borrow its way out of them, have added resonance because of how disastrously that scenario played out in the mid-1970s, the city’s last and most famous brush with the fiscal abyss.But New York City’s problems, and its request to potentially borrow its way out of them, have added resonance because of how disastrously that scenario played out in the mid-1970s, the city’s last and most famous brush with the fiscal abyss.
The Financial Control Board forced the city to absorb drastic spending cuts: Workers were let go and hospitals were closed. Crimes and disorder rose; tens of thousands of residents fled the city, as New York turned into a national symbol of urban decay.The Financial Control Board forced the city to absorb drastic spending cuts: Workers were let go and hospitals were closed. Crimes and disorder rose; tens of thousands of residents fled the city, as New York turned into a national symbol of urban decay.
Mr. Cuomo, who prides himself on being fiscally conservative and would need to sign the legislation, referenced the 1970s nadir as he cautioned against granting New York City borrowing capacity. He said on Thursday that although government has long issued bonds to pay for long-term capital projects, doing so for operating expenses was fiscally questionable.Mr. Cuomo, who prides himself on being fiscally conservative and would need to sign the legislation, referenced the 1970s nadir as he cautioned against granting New York City borrowing capacity. He said on Thursday that although government has long issued bonds to pay for long-term capital projects, doing so for operating expenses was fiscally questionable.
“We don’t want to create a situation where the state or any local government borrows so much money that they can’t repay it, and then you have to start to cut service and now you’re in that vicious downward spiral,” Mr. Cuomo, a third-term Democrat, said during a briefing at the New York Stock Exchange in Manhattan on Tuesday. “New York City has been there before.”“We don’t want to create a situation where the state or any local government borrows so much money that they can’t repay it, and then you have to start to cut service and now you’re in that vicious downward spiral,” Mr. Cuomo, a third-term Democrat, said during a briefing at the New York Stock Exchange in Manhattan on Tuesday. “New York City has been there before.”
Indeed, economists frown on borrowing to cover operating expenses, saying that debt should ideally only be taken on for large, long-term projects — ideally those, like tolled bridges and roads that generate income. Borrowing for short-term needs, much like taking a loan to cover rent, does nothing to fix the cause of the deficit while shifting the debt to future generations.Indeed, economists frown on borrowing to cover operating expenses, saying that debt should ideally only be taken on for large, long-term projects — ideally those, like tolled bridges and roads that generate income. Borrowing for short-term needs, much like taking a loan to cover rent, does nothing to fix the cause of the deficit while shifting the debt to future generations.
Scott M. Stringer, the city comptroller, said that if the city borrowed $7 billion to cover current expenses, it would most likely be on the hook for more than $500 million a year in debt payments for the next 20 years. “That $500 million means less for teachers, child care and restricts our ability to borrow for needed infrastructure improvements,” he said.Scott M. Stringer, the city comptroller, said that if the city borrowed $7 billion to cover current expenses, it would most likely be on the hook for more than $500 million a year in debt payments for the next 20 years. “That $500 million means less for teachers, child care and restricts our ability to borrow for needed infrastructure improvements,” he said.
But the mayor said on Wednesday that he cannot make further reductions without leading the city to a “horrible place where we would be cutting back basic services, cutting back personnel, furloughs, layoffs, things we do not want to see, things that go against everything that we believe is right for New York City.”But the mayor said on Wednesday that he cannot make further reductions without leading the city to a “horrible place where we would be cutting back basic services, cutting back personnel, furloughs, layoffs, things we do not want to see, things that go against everything that we believe is right for New York City.”
Mr. de Blasio, a Democrat, said that his $89.3 billion executive budget, released in April, already included $2.7 billion in cuts to a bevy of municipal services, including traffic safety enforcement, tree pruning and a program that provided thousands of poor young people with summer jobs.Mr. de Blasio, a Democrat, said that his $89.3 billion executive budget, released in April, already included $2.7 billion in cuts to a bevy of municipal services, including traffic safety enforcement, tree pruning and a program that provided thousands of poor young people with summer jobs.
The city has also had to spend $1.4 billion to fight the pandemic, a sum that officials anticipate will rise to $3.5 billion by the end of the year.The city has also had to spend $1.4 billion to fight the pandemic, a sum that officials anticipate will rise to $3.5 billion by the end of the year.
In the negotiations over whether state lawmakers should give the city the latitude to borrow money, the possibility has been raised of giving the Financial Control Board, whose broad control over the city’s budget expired decades ago, the added power to formally approve any bond issuances.In the negotiations over whether state lawmakers should give the city the latitude to borrow money, the possibility has been raised of giving the Financial Control Board, whose broad control over the city’s budget expired decades ago, the added power to formally approve any bond issuances.
The board has seven members, three of whom are appointed by the governor, who also serves on the board. City officials oppose giving the board any added oversight power.The board has seven members, three of whom are appointed by the governor, who also serves on the board. City officials oppose giving the board any added oversight power.
The state last authorized the city to take on debt for operating costs after the terrorist attacks on Sept. 11. The move — which followed an appeal from Michael R. Bloomberg, who was then mayor — gave city officials financial breathing room and allowed them to issue so-called recovery bonds.The state last authorized the city to take on debt for operating costs after the terrorist attacks on Sept. 11. The move — which followed an appeal from Michael R. Bloomberg, who was then mayor — gave city officials financial breathing room and allowed them to issue so-called recovery bonds.
Lawmakers from the city, who dominate the Democratic-led Legislature, say that the current situation calls for similar measures.Lawmakers from the city, who dominate the Democratic-led Legislature, say that the current situation calls for similar measures.
Updated June 12, 2020 Updated June 16, 2020
The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave.
So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement.So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement.
Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.
A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study.A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study.
The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April.The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April.
Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission.Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission.
Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home.
States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people.States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people.
Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.
If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)
Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications.Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications.
The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing.The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing.
If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.
If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested.If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested.
In February, before the economy shuttered, the city had 4,669,000 million jobs, according to the Independent Budget Office. By April, the city had 3,756,900 jobs — a loss of 912,100. Certain sectors like the hospitality industry were hit particularly hard: Hotel occupancy plummeted to 15 percent in the last week in March, down from an average of 88 percent in 2019.In February, before the economy shuttered, the city had 4,669,000 million jobs, according to the Independent Budget Office. By April, the city had 3,756,900 jobs — a loss of 912,100. Certain sectors like the hospitality industry were hit particularly hard: Hotel occupancy plummeted to 15 percent in the last week in March, down from an average of 88 percent in 2019.
“The city is in distress,” said Michael Gianaris, a Democratic state senator from Queens who serves as deputy majority leader. “And we should do what is reasonable to avoid billions of dollars of service cuts.”“The city is in distress,” said Michael Gianaris, a Democratic state senator from Queens who serves as deputy majority leader. “And we should do what is reasonable to avoid billions of dollars of service cuts.”
Senator Krueger, a Democrat who represents the East Side of Manhattan and introduced the borrowing bill, said that giving the city the authority to borrow up to $8 billion “doesn’t mean they’re actually going to use it,” adding that it was “not an unreasonable ask for the city to make.”Senator Krueger, a Democrat who represents the East Side of Manhattan and introduced the borrowing bill, said that giving the city the authority to borrow up to $8 billion “doesn’t mean they’re actually going to use it,” adding that it was “not an unreasonable ask for the city to make.”
Legislators don’t plan to vote on the bill this week after failing to reach an agreement with the governor and city officials, but negotiations continue, and the proposal could be brought up for a vote in the coming weeks.Legislators don’t plan to vote on the bill this week after failing to reach an agreement with the governor and city officials, but negotiations continue, and the proposal could be brought up for a vote in the coming weeks.
Both the mayor and the governor have said that without substantial federal recovery funds, essential city and state services, like policing, health care and education, would be endangered.Both the mayor and the governor have said that without substantial federal recovery funds, essential city and state services, like policing, health care and education, would be endangered.
Indeed, Republican resistance to additional financial support for the states has increased in Washington, particularly for states led by Democrats. Last month, the Senate majority leader, Mitch McConnell, sparked a furious retort from Mr. Cuomo after referring to possible additional federal funding for state and local governments as a “blue-state bailout,” chastising such states for past fiscal irresponsibility.Indeed, Republican resistance to additional financial support for the states has increased in Washington, particularly for states led by Democrats. Last month, the Senate majority leader, Mitch McConnell, sparked a furious retort from Mr. Cuomo after referring to possible additional federal funding for state and local governments as a “blue-state bailout,” chastising such states for past fiscal irresponsibility.
That line of attack was echoed by President Trump, who met with Mr. Cuomo in the White House on Wednesday.That line of attack was echoed by President Trump, who met with Mr. Cuomo in the White House on Wednesday.
Mr. Cuomo said that allowing the city to borrow could dissuade Congress from giving New York the billions of dollars in federal funding the governor and mayor have said are critically needed.Mr. Cuomo said that allowing the city to borrow could dissuade Congress from giving New York the billions of dollars in federal funding the governor and mayor have said are critically needed.
Mr. de Blasio is already relying heavily on reserve funds to balance the budget. The city is drawing $2.6 billion from the retiree health benefit trust, $900 million from general reserves and $250 million from the capital stabilization reserve to balance the 2021 budget, according to the Independent Budget Office.Mr. de Blasio is already relying heavily on reserve funds to balance the budget. The city is drawing $2.6 billion from the retiree health benefit trust, $900 million from general reserves and $250 million from the capital stabilization reserve to balance the 2021 budget, according to the Independent Budget Office.
Andrew Rein, the president of the Citizens Budget Commission, a fiscally conservative watchdog, said the city could still find additional savings in its budget. Getting permission to borrow could lead city officials to avoid “making the hard choices today,” he said.Andrew Rein, the president of the Citizens Budget Commission, a fiscally conservative watchdog, said the city could still find additional savings in its budget. Getting permission to borrow could lead city officials to avoid “making the hard choices today,” he said.
“Borrowing, it seems painless, but it’s not at all,” he said. “Basically what you do is make future New Yorkers pay for your bills. It’s pretty clear to us that the city should not go there yet. There is a lot more that it could do.”“Borrowing, it seems painless, but it’s not at all,” he said. “Basically what you do is make future New Yorkers pay for your bills. It’s pretty clear to us that the city should not go there yet. There is a lot more that it could do.”
Progressive lawmakers, whose election in 2018 helped Democrats regain control of the Legislature for the first time in nearly a decade, have proposed another potential solution: a series of new taxes on the wealthy — from taxes on the superrich and stock buybacks to a levy on pieds-à-terre — which activists say will raise billions of dollars in new revenue.Progressive lawmakers, whose election in 2018 helped Democrats regain control of the Legislature for the first time in nearly a decade, have proposed another potential solution: a series of new taxes on the wealthy — from taxes on the superrich and stock buybacks to a levy on pieds-à-terre — which activists say will raise billions of dollars in new revenue.
Those proposals, however, are not on the Legislature’s agenda this week.Those proposals, however, are not on the Legislature’s agenda this week.
“This form of shared sacrifice is totally appropriate when you’re in a time of crisis,” said Michael Kink, the executive director of Strong Economy for All, a coalition of progressive groups and unions. “Mitch McConnell is not going to save New York. I think we are going to have the wealthiest New Yorkers pay more at some point.”“This form of shared sacrifice is totally appropriate when you’re in a time of crisis,” said Michael Kink, the executive director of Strong Economy for All, a coalition of progressive groups and unions. “Mitch McConnell is not going to save New York. I think we are going to have the wealthiest New Yorkers pay more at some point.”
Mr. Cuomo’s budget officials have argued that high-income New Yorkers already pay some of the nation’s highest taxes and that new taxes could lead many of them to decide to flee, shrinking an important part of the state’s tax base.Mr. Cuomo’s budget officials have argued that high-income New Yorkers already pay some of the nation’s highest taxes and that new taxes could lead many of them to decide to flee, shrinking an important part of the state’s tax base.