New York, NY –
New York City's comptroller will deliver bad economic news to the Financial Control Board today. William Thompson is expected to tell the board that the city's future budget gaps will be larger than anticipated.
Thompson projects that the city's debt will grow by more than 7 percent a year through the next four years, despite a balanced budget for fiscal year 2009. He warns that rising costs and stagnating tax revenues will put the city's budget under pressure for some time.
The comptroller says the city should institute a formal "rainy day fund" to balance out volatile revenues in coming years. And in an analysis to be released today, Thompson urges to the city to pay as it goes for capital spending to keep debt down.