“The second wave is here.” That is how forceful and direct was the message of the Health Committee of the City Council.
“We are entering an even more difficult new phase with the accelerated spread of the virus throughout the community now, actually throughout the city,” said Council Member Mark Levine. “So I think we will have to be more cautious than we have been during the summer and fall months, even with meetings abroad,” he added.
Governor Andrew Cuomo, like neighboring New Jersey, imposed restrictions on the hours of operation of restaurants, bars and other businesses.
However, since March, thousands of small businesses in New York City have closed, eliminating hundreds of jobs.
At the same time, the city faces a budget gap next year that could reach $ 4 billion. The administration of Mayor Bill de Blasio has applied to the state Legislature for permission to borrow to cover the deficit and prevent one of the worst financial crises in the history of the Big Apple.
But a recent report released by the State Comptroller Thomas DiNapoli urged the city to avoid borrowing money to cover its day-to-day operations.
DiNapoli argued that although the city is in a better fiscal position now compared to previous recessions, the current financial situation is still extremely fragile and loans will only worsen its financial situation.
Borrowing to cover operating expenses, which the report called “unsustainable,” would create a long-term liability to solve short-term problems caused by the pandemic.
DiNapoli made it clear in the report that he agreed with de Blasio that more federal funding should be provided, but that other options beyond borrowing while the city waits for funding should also be examined, to prevent debt from becoming a burden on New Yorkers, as happened after the terrorist attacks of September 11, 2001.
State Senate Majority Leader Andrea Stewart-Cousins, City Council Speaker Corey Johnson, and City Comptroller Scott Stringer have asked De Blasio to present a cohesive approach to applying for a loan before supporting the proposal. However, the mayor has yet to publish a plan to manage the billions he wants to borrow.
In September, De Blasio said that if federal funds were not provided soon or if the Legislature did not authorize the loan, thousands of municipal workers would be laid off, in addition to cuts in service.
According to financial experts, spending cuts in specific areas would help prevent layoffs of city employees. Ana Champeny, director of city studies at the Citizen Budget Commission, wrote a report outlining the tough financial decisions the city will face next year to mitigate the damage caused by the pandemic, including the gradual reduction of staffing levels. , cutting expenses and increasing efficiency.
“We think it’s possible for the city to manage the number of employees through attrition,” said Champeny. “So even if you hire one out of every two positions that leave, you should see your workforce shrink over time, and in that case you don’t have to make layoffs.”
The city will need to create a plan in the coming months to prepare for its next fiscal year, when local governments begin to reshape the post-pandemic economy.
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