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Fiscal Management

All articles tagged with #fiscal management

politics1 year ago

NYC Mayor Adams Halts Budget Cuts, Reduces Migrant Spending

NYC Mayor Eric Adams cancels upcoming budget cuts and relaxes spending controls, citing a rosy financial outlook and projected savings from reduced migrant sheltering costs. The reversal comes after a Moody's report reaffirmed the city's high credit rating and revised revenue projections upward by $3 billion. However, critics warn that the city's fiscal condition remains precarious, and the rollbacks may weaken the mayor's bargaining position with unions and legislators. Adams emphasizes the need for additional support from Albany and Washington, D.C., but the decision to cancel the savings plan complicates his case to the federal government and gives away bargaining chips in upcoming battles in Albany.

via POLITICO|
#budget-cuts#fiscal-management#mayor-eric-adams
politics2 years ago

"Mayor Adams' Budget Balancing Act: Navigating NYC's Financial Future"

Mayor Eric Adams initially claimed a financial crisis due to asylum seeker costs, leading to budget cuts, but later reduced the projected costs and rescinded many cuts, eroding credibility with the City Council and voters. The sudden shift was attributed to decisions made by the administration, including an unprecedented budget approach and failure to update revenue projections. The mayor's actions have raised concerns about transparency and trust in budget management, with critics questioning the impact on future budget negotiations.

via THE CITY|
#asylum-seekers#city-council#fiscal-management
politics2 years ago

"Mayor Adams Reverses Budget Cuts, Restores Funding for NYC Services"

Mayor Adams reverses budget cuts to sanitation and parks departments, restoring funding for trash cans and seasonal parks staffers, after facing criticism and legal action. The move raises questions about the necessity of the initial cuts and prompts concerns about the mayor's fiscal management. Critics argue that the money exists to avoid broad cuts and protect essential services, while Adams maintains that the cuts are necessary to address a $7 billion budget deficit. The back-to-back reversals have emboldened some critics and advocacy groups to push for the restoration of other vital services.

via Gothamist|
#budget-cuts#fiscal-management#mayor-eric-adams
economy2 years ago

The Costly Consequences of America's Credit Downgrade

Fitch Ratings has downgraded the creditworthiness of the US government from AAA to AA+ due to the increasing size of US indebtedness and an "erosion of governance." The downgrade could have long-term implications for US economic growth and borrowing costs. The US Treasury currently owes $32.6 trillion, and if investors perceive US Treasury bonds as riskier, they may demand higher interest rates or become less interested in buying them, resulting in higher borrowing costs for the government. The federal government has limited options to cover its growing borrowing costs, including borrowing more money, hiking tax rates, or cutting spending, all of which have political consequences. Higher government debt is generally associated with lower long-term economic growth.

via Fortune|
#borrowing-costs#economy#fiscal-management
economy2 years ago

Fitch Downgrades U.S. Credit Rating to AA+ Amid Political Turmoil

Fitch Ratings has downgraded the long-term credit rating of the United States from AAA to AA+, citing the nation's high and growing debt burden and its history of brinkmanship over borrowing authority as factors eroding confidence in fiscal management. This is the second downgrade in America's history and comes two months after narrowly avoiding defaulting on its debt. The ongoing political standoffs and lack of a medium-term fiscal framework, along with the growing levels of U.S. debt, were major considerations for the downgrade. The move could limit the number of investors able to buy U.S. government debt, potentially increasing borrowing costs, although the impact is expected to be limited given the size of the Treasury market and ongoing demand for U.S. Treasury securities. The Biden administration criticized the decision, arguing that it did not reflect the strength of the U.S. economy.

via The New York Times|
#debt-limit-standoffs#downgrade#economy