Deficits Push New York Municipalities to Desperation

Deficits Push New York Municipalities to Desperation

"...Even as there are glimmers of a national economic recovery, cities and counties increasingly find themselves in the middle of a financial crisis. The problems are spreading as municipalities face a toxic mix of stresses that has been brewing for years, including soaring pension, Medicaid and retiree health care costs. And many have exhausted creative accounting maneuvers and one-time spending cuts or revenue-raisers to bail themselves out..."

 "...New York City’s annual pension contributions have increased to $8 billion from $1.5 billion over the past decade..."

"...Three percent of New York property tax collections were used to pay pension costs in 2001; by 2015, pension costs are expected to eat up 35 percent of property tax collections..."