Politics & Government

NYC Is '$9 Billion In The Hole,' Mayor De Blasio Says

New York City faces a $9 billion budget just weeks before it must pass its budget, Mayor Bill de Blasio said Wednesday.

Mayor Bill de Blasio holds a media availability. City Hall. Friday, May 22, 2020.
Mayor Bill de Blasio holds a media availability. City Hall. Friday, May 22, 2020. (Ed Reed/Mayoral Photography Office.)

NEW YORK CITY — The fight against the new coronavirus has New York City facing a $9 billion deficit just weeks before the annual budget must be passed, Mayor Bill de Blasio announced Wednesday.

"We are now $9 billion in the hole," de Blasio said. "It's not shocking to me that things have gotten worse."

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This deficit is more than $1 billion more than the initial $7.4 billion de Blasio estimated the city would face when he released his "wartime" $89.3 billion budget last month.

Comptroller Scott Stringer's office, which estimate shows may have cost New York City 900,000 jobs, criticized the budget for relying too heavily on reserve funds and not making stricter cuts.

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"We need to comb through our budget for savings," Stringer said at the time. "Because every penny counts, and every effort must be made to protect our most vulnerable."

But de Blasio argued Wednesday the budget cuts needed would mean cuts to basic services and layoffs and furloughs for city workers that would worsen the city's economic situation.

"That leads us to a horrible place," said de Blasio. "If we have no choice, we'll make tough decisions, but it won't help us recover."

New York City must, by law, pass its budget by the end of June and, without help, could see economic problems continue well beyond 2021, de Blasio said.

"There is literally no way we can solve this problem without federal help or having to make very painful choices," said de Blasio.

De Blasio pleaded for help from the federal government by way of stimulus funds or from New York State, which could grant the city authority to borrow.

While State Senator Liz Krueger introduced this week a bill to allow New York City to borrow $7 billion, Gov. Andrew Cuomo warned the move 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," Cuomo said.

"Then you have to cut services and now you’re in that vicious downward spiral."

De Blasio countered that former Mayor Michael Bloomberg city successfully borrowed and returned money to maintain the budget after 9/11 in 2001.

"New York City handled that borrowing authority," de Blasio said. "It's something we need as a last resort."

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