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<\/p>\nNEW YORK CITY \u2014 Moody\u2019s Ratings lowered its credit outlook for New York City to negative due to \u201csizable and persistent\u201d budget gaps.<\/p>\n
The credit outlook doesn’t change the city’s actual rating but comes after the first day of City Council budget hearings.<\/p>\n
<\/p>\n
\u201cThe negative outlook reflects the emergence of sizable and persistent projected budget gaps that signal underlying structural imbalance and reduced financial flexibility, despite New York City\u2019s still favorable economic conditions,\u201d Moody\u2019s wrote in an analysis on Wednesday, according to Bloomberg.com.<\/a><\/p>\n New York City Comptroller Mark Levine called the credit outlook update a “sobering wake-up call.”<\/p>\n It is the first negative outlook the city has received since the COVID crisis.<\/p>\n Levine said the city is spending more than it is bringing in, mentioning that the preliminary budget achieves balance only by drawing down reserves.<\/p>\n “Moody\u2019s negative outlook should sharpen our focus on the task ahead: building a budget based on realistic revenue projections, ensuring that spending growth remains sustainable, securing fair funding from Albany, and strengthening City reserves ahead of potential economic risks next year,” Levine added.<\/p>\n Mayor Zohran Mamdani has warned of an estimated $5.8 billion deficit and weighs tax increases to close the gap.<\/p>\n The mayor presented two options to city and state leaders: raising income taxes on residents earning more than $1 million or increasing the city\u2019s property tax rate to 9.5%.<\/p>\n Mamdani described the property tax increase as a \u201clast resort.\u201d<\/p>\n On Tuesday, a new fiscal analysis from the New York City Council identified nearly $1.7 billion in potential savings and additional revenue for fiscal year 2026.<\/a><\/p>\n Moody’s Lowers NYC’s Credit Outlook To Negative Due To Budget Gaps <\/a> originally appeared on the New York City Patch<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"NEW YORK CITY \u2014 Moody\u2019s Ratings lowered its credit outlook for New York City to negative due to…\n","protected":false},"author":2,"featured_media":160982,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[66437,18079,66394,66395,9,24,56,63,65,64],"class_list":["post-160981","post","type-post","status-publish","format-standard","has-post-thumbnail","category-new-york-city","tag-credit-outlook","tag-mark-levine","tag-moodys-ratings","tag-negative-outlook","tag-new-york","tag-new-york-city","tag-ny","tag-nyc","tag-nyc-headlines","tag-nyc-news"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/160981","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/comments?post=160981"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/160981\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media\/160982"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media?parent=160981"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/categories?post=160981"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/tags?post=160981"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}