HomeRenters InsuranceNew York City may lose state support over federal cuts, Hochul says

New York City may lose state support over federal cuts, Hochul says


In today’s CapCon:

  • Storm clouds are on the horizon for New York City’s finances and Hochul said Wednesday the state may not be able to help.

  • Lt. Gov. Antonio Delgado and a coalition of Democrats and advocates made their loudest call yet Wednesday for a special session of the Legislature.

  • A bill has been revived that would allow special boards to negotiate wages, benefits and conditions across entire industries.

  • Estimated billing practices by utility companies can result in surprise bills. That may soon end.

  • Insurance companies may soon be barred from using someone’s dog breed to deny or raise the price of renters insurance.

  • Public hearings on the state’s energy plan have been set. Here’s the schedule.

Names in today’s CapCon: Kathy Hochul, Eric Adams, Thomas P. DiNapoli, Brad Lander, Antonio Delgado, Emily Gallagher, Amanda Septimo, Shelley Mayer, Michelle Hinchey, Jonathan Jacobson, Michael Gianaris, Linda B. Rosenthal, Doreen Harris
Hochul and New York City Mayor Eric Adams Wednesday (New York Governor’s Office)

If you’re like me, your primary care doctor likes to see you once a year for a checkup.

The same is required for the finances of New York City, which have been monitored each year for the last half century through what’s now become an annual meeting of the State Financial Control Board.

That meeting was held Wednesday and brought together some of New York’s top elected officials, including Gov. Kathy Hochul, Mayor Eric Adams, State Comptroller Thomas P. DiNapoli and City Comptroller Brad Lander.

Despite its name, the board is focused exclusively on the finances of New York City. It was born in 1975, when the city was in the throes of a major financial crisis following a drop in federal revenue. Happy anniversary, I guess.

That situation might sound familiar because it’s exactly what the city is anticipating right now.

“There’s a saying that history does not repeat itself, but it often rhymes,” DiNapoli said at the meeting. “I believe some of the lessons from that time are worth reviewing today.”

There is good news and bad news about New York City’s finances. The good news is that they’re doing fine at the moment, with billions of dollars more in revenue than city budget officials had projected for the most recent fiscal year, which ended in June.

The bad news is that there are storm clouds on the horizon. By fiscal year 2027, the city’s budget gap may exceed $10 billion, DiNapoli said.

It’s been a rough few years for New York City. Just as it was recovering from the worst of the coronavirus pandemic, tens of thousands of immigrants were bussed into the five boroughs with little more than the clothes on their backs.

The gang’s all here (New York City Mayor’s Office)

More than $8 billion has been spent since then to house and care for those immigrants — a cost that wasn’t anticipated and led Adams to consider deep cuts in city spending.

Hochul and the state Legislature heard the city’s call for help and approved about $4.3 billion in aid to help manage the crisis. Not all of that funding has been spent but it’s been appropriated, city officials have told state lawmakers.

That’s when the state was in a relatively good financial position compared to what it’s facing now. Hochul said during the meeting that the next few years will be different.



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