In a shocking piece from the New York Post, it has been reported that financial experts predict that liberally-run New York City is on its way to bankruptcy for the first time in 40 years.
Breitbart News reports: Financial experts predict that there are already signs the city is headed for financial disaster, as many individuals and businesses are leaving the city for lower tax areas and city government spending is at an all-time high.
The last time the city came close to filing for bankruptcy was in 1975 when former President Gerald Ford refused to give the city a bailout package to settle its debt.
The New York Post interviewed economist Milton Ezrati, who explained, “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. New York is already in a difficult financial spot, but it would be in an impossible situation if we had any kind of setback.”
Over the last year, New York City’s budget deficit has managed to reach a new high. The city’s “long-term liabilities,” according to Breitbart, include bonded debt, pensions, as well as retirement benefits for those government employees working there. According to a Citizens Budget Commission report from October of 2018, the city’s liabilities managed to come in at a record-high of $257.3 billion.
Although New York City’s budget deficit is now at an all-time high, Mayor Bill de Blasio doesn’t seem to be doing anything to reign in the spending.
Breitbart reports that de Blasio is actually planning on “adding $3 billion in spending to the current $89.2 billion budget, and spending money at a rate that is three times the rate of inflation, according to the Post.”
It doesn’t seem that de Blasio will be getting any aid from Democratic Governor Andrew Cuomo. Cuomo is currently using auditors to charge the state’s wealthy residents, who are leaving the state to settle in areas with lower taxes to deal with a $2.3 billion state budget deficit.
Breitbart reports, “Cuomo’s preliminary budget proposed $600 million in cuts to money allocated to New York City.”