City Financial Position
New York City finances are in the worst shape since the 1970’s when NYC almost went bankrupt.
It has at least a $15 billion budget deficit for the next three fiscal years – according to the City budget office. The deficit appears to be increasing as the City’s financial commitment to migrants increases. It is presently unclear how the deficit will be funded. Both the Federal and State government have indices an unwillingness to help. It is hard to raise taxes to generate revenue, which will drive out people, business and jobs. If the City has to cut services to reduce its expenses, the effect would devastating impact on the lives of all New Yorkers.
The budget deficit is not the only problem. The City has an unfunded liability for retiree and employee benefits of about $100 billion. And its getting worse every year.
Despite the financial contraints, the City continues to expand its budget and take on new expenses. New York City has to make some tough choices as the budget become tighter.
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