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, the Wall Street Journal reported. The growing economic crisis, brought on by the coronavirus pandemic, has alarmed New York Gov. Andrew Cuomo (D) so much that he recently asserted greater control over a panel overseeing the finances of the nation’s largest city. Earlier this summer, Cuomo appointed three close allies to the New York State Financial Control Board. The board played a prominent role during the city’s last fiscal crisis in the 1970s, when it wielded broad legal power over the city’s budget and made difficult spending decisions. Cuomo has grown concerned about the direction of the city budget, state Budget Director Robert Mujica said in an interview. The city had to cut billions to balance its latest budget, but it still has major funding challenges. Local officials have called on Congress to approve a relief package for the city, but talks about a bill are ongoing. As a backstop, New York City Mayor Bill de Blasio asked state lawmakers for authorization to borrow up to $5 billion to fund operating costs. Democrats who control the state Senate objected, and the request hasn’t been granted.
