Manhattan Institute scholars own the Big Apple issues. Steven Malanga sees municipal union militancy & lack of muni-bond market transparency posing potentially grave risks to NYC's financial solvency. E. J. McMahon warns that NY State's pension fund bomb will soon explode. Scholar Nicole Gelinas notes that Mayor Mike negotiates union contracts with public sector employees as if the good times are still rolling. Urban historian Fed Siegel explains how the third big crash of New York City may prove worse than those of the 1930s & 1970s, as runaway spending swallowed up all revenue during good times and with Wall Street moribund, tax revenues are plummeting. As few as 1,501 people--NYC's 1,5000 wealthiest residents plus the new guy at 1600 Pennsylvania Avenue in DC, may hold the keys to the city's survival. Those 1,500 New Yorkers can depart for other jurisdictions and escape city tax hikes and service cuts; the guy at 1600 calls Chicago his hometown.
Wednesday NY Governor David Paterson shocked police and firefighters by vetoing a routine measure renewing early retirement pension boosts that have been routinely approved since 1981 on a "temporary" basis; but the bill, which passed by lopsided margins in both legislative chambers, will likely be re-passed to override the governor's veto.
Comments