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New York City Confronts Budget Crisis

September 18, 2020

The COVID-19 pandemic has caused the worst fiscal crisis New York City has faced in decades , including an $8.5 billion deficit over the next two years and the prospect of 22,000 layoffs currently scheduled for October 1.

The de Blasio Administration has proposed two primary solutions. The first is to get aid from Washington, DC. The other is securing $5 billion in long-term borrowing authority from Albany. City Council Speaker Corey Johnson (D-Manhattan) and Assembly Speaker Carl Heastie (D-Bronx) support this plan. Senate Majority Leader Andrea Stewart-Cousins (D-Yonkers) has expressed openness to the idea, but said she wants more details. However, Governor Cuomo remains skeptical. Granting New York City borrowing authority could be one of the primary issues the Legislature takes up should it reconvene this fall.