New York on the Fiscal Brink

Here is the current state of the New York City budget. It’s bleak indeed. It’s so bleak that New York’s Governor, Andrew Cuomo is moving to take more control over the city budget. You recall that Cuomo was the Lord High Executioner of the coronavirus crisis. Under his enlightened leadership the state led the nation in virus deaths. Great job, Andy.

The Wall Street Journal has the story:

New York City faces a $9 billion deficit over the next two years, high levels of unemployment and the prospect of laying off 22,000 government workers if new revenue or savings aren’t found in the coming weeks.

And also:

By the final quarter of 2019, the city’s unemployment rate was at a record low of 4%, wages and earnings were up, and economic growth surpassed that of the rest of the country, according to a report released in March by the comptroller’s office.

That was upended weeks later as the city shut down to slow the spread of the virus, which ultimately killed more than 23,600 residents. The unemployment rate was nearly 20% in June.

Obviously, the city is awaiting a bailout from the federal government. Surely, the people of New York City do not deserve the suffering they will endure if said bailout does not come through. But, the people of New York City voted for some of the most incompetent politicians the world has ever seen, so, let’s call it justice.

Without financial help from the federal government, or borrowing authority, layoff notices to thousands of workers across every city agency will go out by Aug. 31, according to a mayoral spokeswoman.

“Our fiscal situation is bad now, and it probably gets worse next year,” Mr. de Blasio said Thursday at his daily press briefing. “I have told all New Yorkers that we’re getting to a point where we’re starting to run out of options.”