NEW YORK: New York City’s projected budget deficit for next fiscal year shrank by US$1.2bil (RM5.04bil), as additional federal reimbursements boosted revenue and robust investment returns reduced expected pension spending, according to a financial plan that was released.
The anticipated budget gap for the fiscal year starting July 1, 2022, fell to US$2.9bil (RM12.19bil), from the US$4.1bil (RM17.23bil) deficit seen in June.
New York will get an additional US$750mil (RM3.15bil) from a Federal Emergency Management Agency reimbursement this fiscal year.
Gains in stocks powered the city’s US$270bil (RM1.13 trillion) pension to a 25.8% return in the 12 months through June 2021, allowing it to reduce public-employee retirement spending by US$804mil (RM3.38bil) next year and even more in the future.
The pension gains will alleviate risks from US$500mil (RM2.1bil) in unidentified annual labour savings, state Comptroller Tom DiNapoli said in a news release. A surge in Wall Street profits in the first half of the year is projected to boost finance-industry bonuses, offsetting weaker wages in sectors such as tourism. New York City’s rebound from the pandemic has been slower than other major areas. ― Bloomberg