New York City has been hit hard in recent months. The pandemic wreaked havoc with the city’s economic stability, and now its leaders are scrambling to repair the damage.
Not only have many jobs been lost, but the city’s overall revenue has tumbled as well. With so many businesses closed, the city simply hasn’t been able to keep up with costs.
And now they’re facing a very grim number: $9 billion loss in revenue.
Last month, Mayor Bill de Blasio warned that he might have to lay off as many as 22,000 local government employees in October.
Fortunately for many, that plan was put on hold. But the loss of billions in sales tax and other sources of revenue just can’t be ignored.
Now, de Blasio has a new solution, and this one isn’t anywhere near as drastic.
New York City Mayor Bill de Blasio announced he will furlough himself and his entire staff on Wednesday, in the midst of a $9 billion loss in revenue.
To help stop the hemorrhaging, de Blasio and his 494 staffers will take an unpaid week off. This will save the city about $860,000.
That’s a far cry from the $9 billion in revenue loss, however. And de Blasio has blamed the federal government for lack of aid in recent weeks.
But the situation remains dire and the furlough will only go so far.
Furthermore, it’s interesting to note that de Blasio apparently has no intention of cutting his $250,000/year salary. Nor does he plan to make any cuts for NYC employees:
[There are] no plans for pay cuts for any New York City employees right now, whether it’s City Hall or any place else, but we never know what the future brings.
The future may require de Blasio and other city officials to make some very difficult decisions.
And that could very well include plenty of layoffs and salary cuts, though de Blasio has no plans to do it right now. His quarter-million-dollar salary will certainly come under scrutiny.
Furthermore, if the city doesn’t bounce back relatively quickly, de Blasio, Governor Cuomo, and others city politicians might face a difficult re-election period.
Right now, it seems clear that many city residents aren’t happy with how their leaders have handled this difficult situation in 2020.
And who knows what steps will have to be taken?
- New York City is facing a $9 billion loss in revenue.
- In reply, Mayor Bill de Blasio has issued a one-week furlough for himself and his 494 staffers.
- But he hasn’t cut his $250,000/year salary, and has no plans to cut salaries from any city employees.