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| Pandemic May Force New York City to Lay Off 22,000 Workers | Pandemic May Force New York City to Lay Off 22,000 Workers |
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| Mayor Bill de Blasio and other top officials warned on Wednesday that the coronavirus pandemic was putting tremendous stress on the finances of government in New York City, raising the prospect that they might have to carry out cuts in infrastructure spending and some of the most sweeping layoffs of municipal workers in decades. | Mayor Bill de Blasio and other top officials warned on Wednesday that the coronavirus pandemic was putting tremendous stress on the finances of government in New York City, raising the prospect that they might have to carry out cuts in infrastructure spending and some of the most sweeping layoffs of municipal workers in decades. |
| The bleak financial picture threatens to hamper New York’s recovery even as it emerges from a brutal lockdown that shut down businesses and brought the city to a virtual halt for three months after it became the epicenter of the U.S. pandemic. | The bleak financial picture threatens to hamper New York’s recovery even as it emerges from a brutal lockdown that shut down businesses and brought the city to a virtual halt for three months after it became the epicenter of the U.S. pandemic. |
| The alarms from New York officials reflect a broader political strategy — threatening deep cuts as part of their effort to pressure Washington to provide more assistance. And New York City’s predicament speaks to the dire fiscal situation of states and localities across the nation. | The alarms from New York officials reflect a broader political strategy — threatening deep cuts as part of their effort to pressure Washington to provide more assistance. And New York City’s predicament speaks to the dire fiscal situation of states and localities across the nation. |
| With the coronavirus siphoning as much as $9 billion in tax revenue from New York City, Mr. de Blasio said on Wednesday that the city might have to lay off or furlough 22,000 municipal workers this fall. | With the coronavirus siphoning as much as $9 billion in tax revenue from New York City, Mr. de Blasio said on Wednesday that the city might have to lay off or furlough 22,000 municipal workers this fall. |
| “We are running out of options here,” the mayor said. “That is the blunt truth.” | “We are running out of options here,” the mayor said. “That is the blunt truth.” |
| The same morning, the state-run transit agency announced that it would suspend its much-heralded $54 billion plan to modernize the city’s antiquated transportation system. | The same morning, the state-run transit agency announced that it would suspend its much-heralded $54 billion plan to modernize the city’s antiquated transportation system. |
| The move came as the Metropolitan Transportation Authority, which oversees the city’s subway and buses, pushed for $3.9 billion in federal emergency funds to help the agency survive the crisis. | The move came as the Metropolitan Transportation Authority, which oversees the city’s subway and buses, pushed for $3.9 billion in federal emergency funds to help the agency survive the crisis. |
| “To be clear, this is a four-alarm fire,” said Patrick J. Foye, chairman of the M.T.A., on Wednesday. “We are facing the most acute financial crisis in the history of the M.T.A.” | “To be clear, this is a four-alarm fire,” said Patrick J. Foye, chairman of the M.T.A., on Wednesday. “We are facing the most acute financial crisis in the history of the M.T.A.” |
| Mr. de Blasio described the layoffs and furloughs as a potentially necessary move in light of substantial budgetary shortfalls brought about by the pandemic’s steep reduction in business activity. | Mr. de Blasio described the layoffs and furloughs as a potentially necessary move in light of substantial budgetary shortfalls brought about by the pandemic’s steep reduction in business activity. |
| As the pandemic has continued to paralyze New York’s economy, the administration’s estimates of its own budget shortfalls have continued to rise, forcing the city to plan for spending cuts in numerous areas. The mayor said the administration was now looking for another $1 billion in savings. | As the pandemic has continued to paralyze New York’s economy, the administration’s estimates of its own budget shortfalls have continued to rise, forcing the city to plan for spending cuts in numerous areas. The mayor said the administration was now looking for another $1 billion in savings. |
| Mr. de Blasio said he was talking with municipal labor unions in the hope of finding savings that would forestall layoffs from a city work force that numbered 326,000 by the end of 2019, according to the Citizens Budget Commission. | Mr. de Blasio said he was talking with municipal labor unions in the hope of finding savings that would forestall layoffs from a city work force that numbered 326,000 by the end of 2019, according to the Citizens Budget Commission. |
| That includes an expansion of nearly 30,000 during Mr. de Blasio’s administration, said Andrew Rein, the commission’s president. | That includes an expansion of nearly 30,000 during Mr. de Blasio’s administration, said Andrew Rein, the commission’s president. |
| Mr. Rein noted that Mr. de Blasio will have to grapple with even more significant budget shortfalls in future years, even if he does find $1 billion in labor savings. He also argued that the city could find labor savings in ways that do not entail layoffs, including by operating more efficiently and consolidating union welfare funds. | Mr. Rein noted that Mr. de Blasio will have to grapple with even more significant budget shortfalls in future years, even if he does find $1 billion in labor savings. He also argued that the city could find labor savings in ways that do not entail layoffs, including by operating more efficiently and consolidating union welfare funds. |
| The city hasn’t seen layoffs since 2012, when City Hall laid off fewer than 1,000 employees, the commission said. | The city hasn’t seen layoffs since 2012, when City Hall laid off fewer than 1,000 employees, the commission said. |
| When the city was on the brink of insolvency in the 1970s, its work force declined by 20 percent, or 45,000 full-time employees, over three years, according to the commission. | When the city was on the brink of insolvency in the 1970s, its work force declined by 20 percent, or 45,000 full-time employees, over three years, according to the commission. |
| Harry Nespoli was laid off from his job at the Sanitation Department in 1975. Now he leads the Municipal Labor Committee, a coalition of about 110 city unions. | Harry Nespoli was laid off from his job at the Sanitation Department in 1975. Now he leads the Municipal Labor Committee, a coalition of about 110 city unions. |
| He has been in talks with City Hall for more than a month to find savings and said the timing of Mr. de Blasio’s announcement on Wednesday was unhelpful. | He has been in talks with City Hall for more than a month to find savings and said the timing of Mr. de Blasio’s announcement on Wednesday was unhelpful. |
| “What performance does the mayor expect to get from his work force now?” Mr. Nespoli said. | “What performance does the mayor expect to get from his work force now?” Mr. Nespoli said. |
| While criminal justice advocates have called for a $1 billion cut to the New York Police Department’s budget, they would like to see that funding distributed elsewhere, not eliminated from the budget entirely. | While criminal justice advocates have called for a $1 billion cut to the New York Police Department’s budget, they would like to see that funding distributed elsewhere, not eliminated from the budget entirely. |
| “We’re often told we can only get jobs or justice,” said Anthonine Pierre, deputy director of the Brooklyn Movement Center, via text. “The hard work of the mayor is to figure out how to provide both.” | “We’re often told we can only get jobs or justice,” said Anthonine Pierre, deputy director of the Brooklyn Movement Center, via text. “The hard work of the mayor is to figure out how to provide both.” |
| Mr. de Blasio has sought authority from Albany to take on debt for operating costs, though state legislators have seemed reluctant to grant it. Some interpreted his announcement as a means by which to exert leverage on Albany legislators to take action. | Mr. de Blasio has sought authority from Albany to take on debt for operating costs, though state legislators have seemed reluctant to grant it. Some interpreted his announcement as a means by which to exert leverage on Albany legislators to take action. |
| On Wednesday, the mayor suggested that it would be foolish to hold out for further relief from Washington lawmakers. | On Wednesday, the mayor suggested that it would be foolish to hold out for further relief from Washington lawmakers. |
| “For weeks and weeks, we all had the hope that there would be a federal stimulus plan by now,” Mr. de Blasio said. “It’s quite clear that’s not happening.” | “For weeks and weeks, we all had the hope that there would be a federal stimulus plan by now,” Mr. de Blasio said. “It’s quite clear that’s not happening.” |
| The M.T.A.’s sweeping capital program, the largest in the transit agency’s history, was hailed as a much-needed transformation of the century-old system after years of disinvestment had plunged it into disrepair. | The M.T.A.’s sweeping capital program, the largest in the transit agency’s history, was hailed as a much-needed transformation of the century-old system after years of disinvestment had plunged it into disrepair. |
| Updated August 27, 2020 | |
| It includes installing modern subway signals, purchasing more than 1,900 new subway cars and 500 electric buses and adding elevators to 70 stations across the vastly inaccessible subway system. | It includes installing modern subway signals, purchasing more than 1,900 new subway cars and 500 electric buses and adding elevators to 70 stations across the vastly inaccessible subway system. |
| But after revenue used to keep the system running from fares, tolls and dedicated taxes vanished almost overnight because of the pandemic, the future of the project was thrown into uncertainty. | But after revenue used to keep the system running from fares, tolls and dedicated taxes vanished almost overnight because of the pandemic, the future of the project was thrown into uncertainty. |
| “The simple fact is that the capital program of the M.T.A. is frozen because of uncertainty about how much money is going to be available,” said Janno Lieber, head of the authority’s capital construction. The suspension of the capital plan was first reported by The City. | “The simple fact is that the capital program of the M.T.A. is frozen because of uncertainty about how much money is going to be available,” said Janno Lieber, head of the authority’s capital construction. The suspension of the capital plan was first reported by The City. |
| At the same time, the agency’s plan to implement the country’s first congestion pricing plan — which would charge people driving into the busiest parts of Manhattan — has stalled in the face of federal inaction on environmental review guidance. The revenue from that proposal was supposed to support the M.T.A.’s modernization plan, too. | At the same time, the agency’s plan to implement the country’s first congestion pricing plan — which would charge people driving into the busiest parts of Manhattan — has stalled in the face of federal inaction on environmental review guidance. The revenue from that proposal was supposed to support the M.T.A.’s modernization plan, too. |
| In March, the authority received a nearly $4 billion federal bailout to cover initial revenue loss, and New York transit officials have lobbied for another $3.9 billion in emergency federal funds. The agency projects that it is facing a $10 billion deficit over the next two years. | In March, the authority received a nearly $4 billion federal bailout to cover initial revenue loss, and New York transit officials have lobbied for another $3.9 billion in emergency federal funds. The agency projects that it is facing a $10 billion deficit over the next two years. |
| On Wednesday, transit officials said that they are also considering job cuts, service reductions and fare and toll increases in order to weather the financial crisis in the years to come. | On Wednesday, transit officials said that they are also considering job cuts, service reductions and fare and toll increases in order to weather the financial crisis in the years to come. |
| As a stopgap measure to ensure trains continued to run, New York lawmakers allowed the M.T.A. to borrow money to pay for operating costs — an option Albany seems unwilling to offer City Hall. | As a stopgap measure to ensure trains continued to run, New York lawmakers allowed the M.T.A. to borrow money to pay for operating costs — an option Albany seems unwilling to offer City Hall. |
| Albany has also allowed the M.T.A. to use funds it had set aside for system modernization for operating expenses. So far, the authority has not dipped into that funding, which would total around $950 million. But shelving the capital program indefinitely suggests that transit officials plan to do so if the agency does not receive another federal bailout. | Albany has also allowed the M.T.A. to use funds it had set aside for system modernization for operating expenses. So far, the authority has not dipped into that funding, which would total around $950 million. But shelving the capital program indefinitely suggests that transit officials plan to do so if the agency does not receive another federal bailout. |
| “This is not hyperbole: The M.T.A.’s projected losses are catastrophic,” said Rachael Fauss, a senior research analyst at Reinvent Albany, a watchdog group. “Without federal funding, they have to resort to options that include opening the capital lockbox.” | “This is not hyperbole: The M.T.A.’s projected losses are catastrophic,” said Rachael Fauss, a senior research analyst at Reinvent Albany, a watchdog group. “Without federal funding, they have to resort to options that include opening the capital lockbox.” |
| Delays to already overdue upgrades outlined in the capital program risk eroding service over the long term. Years of disinvestment after the 2008 recession plunged the system into such disrepair that Gov. Andrew M. Cuomo declared it to be in a state of emergency in 2017. | Delays to already overdue upgrades outlined in the capital program risk eroding service over the long term. Years of disinvestment after the 2008 recession plunged the system into such disrepair that Gov. Andrew M. Cuomo declared it to be in a state of emergency in 2017. |
| “Momentary cuts in investments — especially in an old system that needs state of good repair investment — have dramatic long-term consequences,” Mr. Lieber said. “Service gets unreliable, things break down and our customers feel the consequences.” | “Momentary cuts in investments — especially in an old system that needs state of good repair investment — have dramatic long-term consequences,” Mr. Lieber said. “Service gets unreliable, things break down and our customers feel the consequences.” |
| Over the last four years, subway service has improved dramatically. But if the system slips back into decay, it could hamper the M.T.A.’s ability to lure back riders as the city reawakens and could hurt the region’s economic recovery. | Over the last four years, subway service has improved dramatically. But if the system slips back into decay, it could hamper the M.T.A.’s ability to lure back riders as the city reawakens and could hurt the region’s economic recovery. |
| “The future of New York hinges on the subway, and the future of the nation hinges on New York,” said Danny Pearlstein, a spokesman for the Riders Alliance, a grass-roots organization. | “The future of New York hinges on the subway, and the future of the nation hinges on New York,” said Danny Pearlstein, a spokesman for the Riders Alliance, a grass-roots organization. |