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.
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