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New York City is ‘$9 Billion in the Hole,’ Mayor Says

Mayor Bill de Blasio said the city is predicted to lose $9 billion in tax revenue between the remainder of this fiscal year and next (Michael Appleton/ Mayoral Photography Office)

May 27, 2020 By Allie Griffin

New York City faces a whopping $9 billion deficit due to the economic fallout of the coronavirus, Mayor Bill de Blasio announced today.

The budget hole was originally estimated to be around $7.4 billion through to June 30, 2021 — but has widened by another $1.6 billion, the mayor said.

“We are now $9 billion in the hole between the current fiscal year and the one that begins July 1,” de Blasio said at City Hall.

The city’s fiscal year begins July 1 and the city council and mayor must pass a 2021 budget by the end of June.

The city is on a time crunch to either make additional budget cuts or find others sources of funds– such as tapping into its reserves or borrowing money. All options are on the table.

“There is literally no way we can solve this problem without federal help or without having to make very very painful choices that will affect the quality of life in this city, our ability to provide basic services and how many people we’re able to employ,” de Blasio said.

He warned that without federal help, the loss of revenue would continue into the next fiscal year and beyond.

An economic relief package that would provide $17.2 billion to New York City has passed the House of Representatives — but has met fierce resistance from the Republican-controlled Senate.

De Blasio urged Congress to pass the package of bills named the HEROES Act.

However, if the federal government doesn’t provide relief, he said New York City could borrow the funds as a last resort.

He is calling on the state to grant the city borrowing power as a “safety net.”

“It’s not something we want to use or intend to use in the first instance,” he said. “But it’s something we need as a last resort if our federal government isn’t there for us.”

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8 Comments

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MRLIC

Let us stop electing Mayors from Massachusetts PLEASE. King Bloomberg nAnd Blasio are both from Mass. Corey Johnson is also from Mass. Please try someone else or a Republican . Can they do any worse than the Dumb-o-crats have done with NYC. All Luxury Apts for the rich, more homeless, terrible subways and buses. Bail reform has been a bust , Man busted twice and released raped a woman, many criminals go out and do more crimes. Dems too soft on crime. Police disrespected and had water thrown on them last summer. NYC too expensive to live in before Pandemic. Before Pandemic 184 empty storefronts on Broadway alone. Time for a change. Cuomo has to go to. (gov. Corruption).

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Peter

NYC News Update:
General Party Secretary of the Union of NYC boroughs comrade De Blasio proposed that… A few minutes later the proposal received 100% approval from NYC party council members.

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Thrive

$1 billion of that is from his wife’s fake “revolutionary” mental health initiative, ironically named Thrive. money could have been handed out to the unemployed.

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your_neighbor

Its only a drop in the bucket but stop suspending parking and losing out on millions of dollars in fines every week. People moving their cars a couple times a week aren’t going to spread the virus.
Then maybe you can use some of that money to open up swimming pools in less privileged areas instead of saying we can’t afford the $12 million to open them.

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Larry Penner

Mayor Bill de Blasio reminds me of J. Wellington Wimpy who famously said “I’ll gladly pay you Tuesday for a hamburger today.” TANSTAAFL – There ain’t no such thing as a free lunch or all the goodies promised by de Blasio over the past six plus years of his administration. He increased spending by $20 billion over the past six years and increased the city payroll by 30,000 under his watch. He never put aside any real money for a rainy day or economic downturn. The private sector and citizens make difficult financial decisions on how to use existing resources. New Yorkers prioritize their own family budgets. They make the hard choices in how existing household financial resources will be spent. If it can wait until later, it should be postponed till next year. City Hall must do the same. Mayor de Blasio should lead by example and take a pay cut. So too, should his commissioners, deputy commissioners along with any of his managers making above $125,000. Millions of New Yorkers manage to survive on salaries less than $100,000 annually.
Larry Penner

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moses

Then why don’t you have everyone, including yourself, pay the same homeowners tax that we do in Queens?

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Merman

Day by day as covid-19 rages on I can’t help but think NYC is headed for a time akin to pre-Giuliani days.

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FromLICQueens

A word is missing from their lexicon: “Cut.” We were in a financial hole long before that bat was undercooked in Wuhan! Cut and save!

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