Rainy day fund
Borough President Eric Adams, State Senator Brian Benjamin and Assemblymember Robert Carroll sent a joint letter to Governor Andrew Cuomo. The letter is sent to activate a rainy day fund.
The letter comes in the middle of the coronavirus pandemic.
The elected officials, including Adams, noted in the letter that the City will only have a brief window to put away money into a rainy day fund before tax revenues plummet.
“Voters approved a measure to deal with exactly these kinds of circumstances,” Adams said. “It’s time the State activated the rainy day fund so we can begin to prepare for the projected budgetary shortfall.”
According to a preliminary analysis by the City Comptroller’s Office, the City is projected to experience short-term budget losses totaling $6 billion in revenue.
The City currently has money set aside in a “reserve” fund, but it cannot be tapped for spending.
“The state must take all the steps it can to mitigate a further economic crisis created by this coronavirus pandemic,” said Carroll.“As the prime sponsor of A8737 in the Assembly, I call on the legislature to pass my bill to allow for New York City to activate a rainy day fund.”
“The last time we faced a recession, we had to cut essential city services to make it through,” said Benjamin. “New York City needs a Rainy Day Fund so we can fund the essential services we depend on in times of crisis.”