December 23, 2020
New York City’s budget faces risks of more than $2 billion annually through fiscal year 2024 without additional federal aid to cities and states, New York State Comptroller Thomas DiNapoli warned Tuesday. Although the risks are difficult to quantify, they would be “significant,” said DiNapoli.
Thanks to “better-than-projected income and business taxes” along with low interest rates, the city has so far staved off the need to issue debt to pay for operations by leaning on one-time measures, DiNapoli said. However, “a prolonged period of economic weakness would require recurring, and more difficult, solutions.”
DiNapoli said the $900-billion federal relief package approved this week by both houses of Congress “provides an important down payment for the regional recovery. But the city, New York State and the Metropolitan Transportation Authority all need additional direct aid to make up revenue shortfalls caused by the COVID-19 pandemic.”
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