NYC at the Abyss: Use the Financial Control BoardBy BETSY McCAUGHEY, Special to the Sun | October 13, 2020
New York is heading into a financial abyss. On October 1, Moody’s downgraded New York City general obligation debt for the first time since the Dinkins era, and warns that more downgrades may be ahead.
Meantime, the De Blasio administration announced October 3 that it was defaulting on a long scheduled $900 million deferred payout to current and former employees. Intervention by a court led to more obligations.
City revenues are plunging, particularly sales tax revenue. Only 10% of Manhattan office employees are back working on site, a lower figure than almost anywhere else in the nation. With workplaces empty, the businesses around them are failing. Retailers, shoe shines, food trucks and restaurants have too few customers. State Comptroller Thomas DiNapoli predicts half of the city’s restaurants will fail, costing over 160,000 more jobs.
New Yorkers need to take action to rescue our city. ...
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