NYC’s Rising Migrant Costs Won’t Destroy Its Finances, Bondholders Say

  • 📰 BNNBloomberg
  • ⏱ Reading Time:
  • 39 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 19%
  • Publisher: 50%

Loans Loans Headlines News

Loans Loans Latest News,Loans Loans Headlines

New York City Mayor Eric Adams says the migrant crisis “will destroy” the city. Not so, say credit analysts and bondholders.

The cost to shelter and care for tens of thousands of migrants is projected to add nearly $5 billion in spending to the city’s $107 billion budget for this fiscal year and an additional $6 billion the following year, according to Adams. But the city has $8 billion in reserves to help cushion against the extraordinary expense.

Fitch raised the most-populous city’s credit rating by one level in February as rising personal income-tax collections boosted its rainy-day fund to a record high of $8.3 billion. “The mayor is acting proactively,” Municipal Market Analytics Inc. wrote in a research note Monday. “A more reasonable downside scenario is that moderately higher spending requirements would amplify budget pressures should an economic recession emerge next year.”

Meanwhile, the city projects personal income-tax revenue will decline by about $2.3 billion in the fiscal year that began July 1 and the city has exhausted pandemic stimulus money. The federal government has awarded the city more the $26 billion in stimulus funds, according to city Comptroller Brad Lander.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 83. in LOANS

Loans Loans Latest News, Loans Loans Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

UK Rents to Rise 25% by 2026 as Landlords Pass On Mortgage CostsBritain’s tenants are feeling much more pressure from soaring interest rates than the rest of the housing market.
Source: BNNBloomberg - 🏆 83. / 50 Read more »