New York City's Fiscal Problems: A Long Road Still Lies Ahead

Like many major, older industrial cities, New York City seems to require ever-growing infusions of Federal and State aid in order to avoid chronic, and ultimately fatal, budget deficits. The City made some specific programmatic cuts early in 1976. Since then, it has been relying essentially on a strategy of containing costs and using Federal and State aid to close its budget gaps. The City's current financial plan continues the strategy of relying heavily on the latter remedy. Obviously, outside help is beneficial from the City's perspective, but local officials may be relying too heavily on others. The City's chances of continuing such a policy are questionable in view of the fiscal "belt tightening" that is expected at the State and Federal levels. The City's latest financial plan, approved in June 1979, projects a balanced budget, on a State legislative basis, for 1980, and budget gaps of $464 million, $830 million, and $854 million for 1981, 1982, and 1983, respectively.