Financial Focus: How does the City get needed money in this Coronavirus year?

Financial Focus: How does the City get needed money in this Coronavirus year?

By Professor Anthony Rivieccio MBA PFA

There is no doubt that New York City needs help. 

With a current NYC unemployment rate of 20% with many currently out of work and City Government threatening even more layoffs, the City is going to need revenues, quickly. 

There was an outcry last week when Councilpeople Vanessa Gibson & Corey Johnson were alleged to try to save revenues by cutting many areas of the City Budget savagely. Later on last week, they both denied that they were cutting the budget. They said they were looking for Federal Government assistance first. In the absence of that, knowing it might be difficult to get money from State Government – they came up with a novel approach- let’s borrow money instead.

The current proposal is to issue out municipal bonds with a 30 year payback. 

Now there is a justification for this policy generally speaking. It does make sense to borrow money during a period of lower interest rates. 

But should the City be allowed to get New York State permission to borrow money? Would you borrow money off your credit card to balance your budget in case of an emergency? Should the Federal Government give money to New York City?. 

Recently we heard from City Government that The Mayor’s wife hired over 20 people making over $100,000 a year . We also heard that The School Chancellor has also hired several ” executives” at a rate of over $100k a year. Maybe we should fire all of them for a start!. 

Professor Anthony Rivieccio, MBA PFA, is the founder and CEO of The Financial Advisors Group, celebrating its 24th year as a fee-only financial planning firm specializing in solving one’s financial problems. Mr. Rivieccio, a recognized financial expert since 1986, has been featured by many national and local media including: Kiplinger’s Personal Finance, The New York Post, News 12 The Bronx, Bloomberg News Radio, BronxNet Television, the Norwood News, The West Side Manhattan Gazette, Labor Press Magazine, Financial Planning Magazine, WINS 1010 Radio, The Co-Op City News, The Bronx News, thisisthebronX.info, The Parkchester Times and The Bronx Chronicle. Mr.  Rivieccio also pens a financial article called “Money Talk”. Anthony is also currently an Adjunct Professor of Business, Finance & Accounting for both, City University of New York & Monroe College, a Private University. You can reach Anthony at 347.575.5045.