On top of that, the $900 billion COVID relief package Congress just passed directs $54 billion to New York. Much of that will go to residents, via “stimulus” checks and enhanced unemployment benefits, and to businesses

This bill directs $54 billion to New York. Much of that will go to residents, via “stimulus” checks and enhanced unemployment benefits, and to businesses

Start with state tax revenue, which has done better than predicted after the pandemic began. Receipts in November totaled $807 million more than projected, state Comptroller Tom DiNapoli reports. From the start of the fiscal year in April through last month, the intake has been a net $375 million above expectations.

https://nypost.com/2020/12/26/ny-leaders-need-to-face-facts-and-start-making-real-cuts/

On top of that, the $900 billion COVID relief package Congress just passed directs $54 billion to New York. Much of that will go to residents, via “stimulus” checks and enhanced unemployment benefits, and to businesses, but it also includes:

$5.8 billion for schools

$4.2 billion for the MTA

$810 million for vaccine distribution

$810 million for the city’s Health Department

$1 billion in disaster-relief funds from the Federal Emergency Management Agency.

That’s a lot of cash. And New York was given even more (about $112 billion in total) in the spring via the CARES Act, which directed:

$7.5 billion in state and local coronavirus-relief aid

$7.5 billion for the disaster relief fund

$4.1 billion for transit

$1 billion for schools

LET’S NOT FORGET THE STALLED $3.4 BILLION NEW YORK STATE ( Under NYS Gov. Cuomo). WE NEED ANSWERS?

https://home.treasury.gov/system/files/136/Interim-Report-of-Costs-Incurred-by-State-and-Local-Recipients-through-June-30.pdf

As for the city, DiNapoli says its finances “have remained resilient,” too — largely “as a result of tax revenue from the financial-services sector.”

Yes, revenues are off for the year: The comptroller notes, for instance, that state tax receipts since April total $3 billion less than over the same period last year. But the big problem clearly isn’t a lack of revenue so much as an addiction to spending.

All pandemic long, de Blasio and Cuomo have both pinned their budgeting on the fantasy that Washington would ship up a big enough handout — if not immediately, then after Joe Biden takes office — to essentially let New York keep spending as if COVID never existed.

Meanwhile, New York’s two “leaders” have waited — and, if anything, made the situation worse: De Blasio, for example, pushed some of this year’s payments to unionized city workers into next year and never got the $1 billion in recurring “labor savings” he promised. That puts enormous strain on future budgets.

Worse, neither acknowledges that, post-pandemic, the New York City government “business model” has to change.

Think about it: Hundreds of thousands of New Yorkers have left the city; a good number won’t be returning to offices here. Financial firms are fleeing. And all that means real estate has lost value.

Rather, city and state politicians must re-think what New York can afford. They’ll need to be frank with labor leaders: structural changes — to pension plans, work rules, overtime practices, etc. — are now simply unavoidable.

Let’s face it: The pandemic appears to have triggered a long-brewing fiscal reckoning. New York’s leaders will have to deal with it realistically — or drown in a sea of red ink.