Inflated public sector spending and high taxes: NYC could go bankrupt for first time in 40 years

Daily Mail ^ | March 9, 2019 | Ariel Zilber

[rickmichaels]

New York City could be one recession away from bankruptcy, financial analysts are warning.

Experts say that the city’s high tax burden, its net out-migration, and skyrocketing public spending could result in New York’s first bankruptcy in more than 40 years.

‘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,’ economist Milton Ezrati 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 last time New York was close to bankruptcy was in 1975, when then-President Gerald Ford famously refused to bail out the city from its crippling debt.

Last October, the city said that its long-term liabilities, including bonded debt, pensions, and other retirement benefits for its public sector workers, reached a record $257.3billion, an increase of $4.7billion since fiscal year 2017.

The average liability per New York City household has increased by more than $1,500 to $82,577, according to the Citizens Budget Commission.

Mayor Bill de Blasio’s new budget includes an additional $3billion in spending - on top of the current $89.2billion.

Analysts say de Blasio’s preliminary fiscal 2020 budget includes $750million in savings, but that won’t be enough if a recession comes - as many predict.

The mayor has also increased spending since taking office. The pace of his spending increase is triple the rate of inflation, according to the Post.

The state has also added more than 33,000 public sector workers in the last five years, thus increasing its long-term liabilities.

To make matters worse, Governor Andrew Cuomo’s preliminary budget calls for a $600million in cuts to spending on the city.

[rickmichaels]

[mewzilla]

I live in NYS.

Note to the other 49: Refuse to bail out NYC. It’s the kindest thing you can do for NYS.

[Ford4000]

Gee, that’s a shame.

[o-n-money]

And they don’t have Abe Beam to help them.

[mewzilla]

The writing was on the wall when the opportunity to amend our state constitution was shot down in flames.

Note to our pols and state employees: On your heads be it.

[allendale]

Wonder if anyone in the MSM will ask De blasio just what happened to the $757 million his wife can’t account for with her extremely well funded “mental health” program.

[Roccus]

And they don’t have Abe Beam to help them.

Now THAT'S funny!!

}:^)

[mewzilla]

It’s worse than that. There are rumors that municipalities all over NYS, from small to large, are cooking their books. The state comptroller is aware of some of this. And has done nothing other than provide cover for the offenders.

The problem isn’t just NYC.

It’s the whole damn state.

[The Pack Knight]

We can chide NYC for its fiscal irresponsibility, and rightfully so, but NYC is downright frugal compared to the federal government,

The average liability per New York City household has increased by more than $1,500 to $82,577, according to the Citizens Budget Commission.

That sounds like a lot, and it is, but it is a fraction as bad as the federal problem. If you count federal liabilities the same way—not just what we call the “national debt,” but including things like unfunded pension liabilities for federal employees and unfunded Social Security and Medicare liabilities—federal long term liabilities are $84 trillion, which is $670,000 per household.

This is nuts, and we had better start getting serious about it.

[blueunicorn6]

Maybe they can borrow some money from Puerto Rico.

[Rapunzel]

I thought the unaccounted for amount was 1.6 billion that was missing. You would think hiring your wife would be looked down upon . No diff from aoc and her bf.

[miss marmelstein]

But if they could just go through Mr. & Mrs. DeBlasio’s mattresses...

[Moonman62]

They elected a commie. Is anybody surprised?

[PeterPrinciple]

This is nuts, and we had better start getting serious about it.

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Folks, who will be the losers and winners in a NYC bankruptcy. It has been 40 years one has happened. Anyone remember the details?

[Extremely Extreme Extremist]

Keep spending money on illegal immigrants, welfare recipients, and abortions, you’re going to keep losing taxpayers.

[Pappy Smear]

[The Pack Knight]

Not to defend de Blasio, who certainly is a commie, but what’s the rest of the country’s excuse? The federal government’s finances are far worse.

[PeterPrinciple]

federal long term liabilities are $84 trillion, which is $670,000 per household.

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In our lifetime a major world power has gone bankrupt. Anyone remember what happened in that situation?

We woke up and read it in the newspapers and said, “That’s interesting.”

[allendale]

Trump is far too kind to his enemies. Much of the “squandered” or more likely stolen money was Federal in origin. If Trump learned anything from the crafty Sicilians he dealt with in the NYC construction business for thirty years, he would have Justice Department forensic accounts and auditors all over New York, Illinois and California. He would probably bag most of the Democratic Party.

[SaxxonWoods]

Time for New York to print its own currency. Then it can print its way out of this.

For a while.