"We don't want to do that... the rainy day fund is there for emergencies. It wasn't raided during COVID. It wasn't raided during the asylum seeker crisis. So we are really completely uncomfortable with raiding it."
"That will actually increase our borrowing costs by about $120 million a year, pointing to recent negative outlooks from Moody's and S&P. It really affects our ability to borrow."
"Mamdani argues the withdrawal is necessary to help close a projected $5.4 billion budget deficit tied to his proposed $127 billion spending plan. He has also warned that property taxes could rise by 9.5% if state lawmakers do not approve higher taxes on millionaires and corporations."
New York City faces a significant budget crisis with a projected $5.4 billion deficit in the proposed $127 billion spending plan. Mayor Zohran Mamdani is requesting access to nearly $1 billion from the city's rainy day fund to help close the gap, while City Council Speaker Julie Menin strongly opposes this approach. The rainy day fund, established in 2021, currently holds approximately $2 billion and has never been tapped, even during COVID-19 or the migrant crisis. Menin warns that withdrawing from the fund could increase borrowing costs by $120 million annually and negatively impact the city's credit rating. The council maintains the budget gap can be closed through agency reviews and efficiency measures without compromising core services.
Read at FOX 5 New York
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