New York City Mayor Bill DeBlasio has responded to a Fox News story claiming his city may be headed for bankruptcy.
The Democratic Mayor tweeted: “New York City’s credit rating just increased for the first time in a decade. We saved $1 billion in February and are on track to save $750 million more in April. Jobs have reached a record high of 4.5 million. Unlike @FoxNews, numbers don’t lie.”
However, Fox News reports that Economists see potential dire signs.
“The city is running a deficit and could be in a real difficult spot if we had a recession, or a further flight of individuals because of tax reform,” Milton Ezrati, chief economist of Vested, a financial communication agency, told the New York Post. “New York is already in a difficult financial spot, but it would be in an impossible situation if we had any kind of setback.”
The Post reported that long-term debt is now more than $81,100 per household in New York City.
Mayor DeBlasio wants to add $3 billion more in the new budget to the current $89.2 billion.
New York City’s credit rating just increased for the first time in a decade. We saved $1 billion in February and are on track to save $750 million more in April. Jobs have reached a record high of 4.5 million.
— Mayor Bill de Blasio (@NYCMayor) March 12, 2019
De Blasio has detailed $750 million in savings for the preliminary fiscal 2020 budget, while Gov. Andrew Cuomo’s preliminary budget has $600 million in city cuts in the coming year, the news outlet reported.
“New York City could go bankrupt, absolutely,” said Peter C. Earle, an economist at the American Institute for Economic Research. “In that case, the city would get temporary protection from its creditors, but it would be very difficult for the city to take on new debt.”
- New York state — and city — are ranked No. 1 nationwide in state and local tax burden.
- Property taxes, almost half of the city’s revenue, are rising faster than any other revenue source — squeezing businesses and forcing homeowners, already hit by federal property tax deduction changes, to relocate to lower-tax states.
- The top 1 percent of New York City earners pay some 50 percent of Big Apple income tax revenue.
READ MORE: The New York Post