New York State Comptroller Thomas DiNapoli has released a scathing 48-page report highlighting the fiscal challenges faced by New York City due to a lack of tight border policies, federal funding, and the ongoing migrant crisis.
Key Findings and Criticisms
The report criticizes President Joe Biden’s administration’s handling of the southern border and failure to support New York’s nearly 57,000, and likely growing, migrant population.
DiNapoli wrote, “The lack of federal policy adjustments and a substantial matching share of funding for managing the asylum seeker influx has created an unsustainable fiscal issue for the city.”
The projected migrant crisis cost may rise to $12.25 billion over the next three years, surpassing previous estimations.
Local Response and Challenges
Mayor Eric Adams has been compelled to consider cutting essential services, including free meals for migrants, in order to finance the thousands more expected to enter city care.
Mayor Adams warned President Biden about the city’s growing migrant crisis and has requested funding and aid several times since migrants began arriving in New York City over a year ago. He predicts that the lack of federal support will ultimately “decimate” the city.
Adams said, “New York City is the economic engine of this entire state and country. If you decimate this city, you’re going to decimate the foundation of what’s happening.”
Despite Mayor Adams’ persistent calls for help with the migrant crisis, President Biden has neither promised extra money nor offered any additional assistance.
However, Adams recently had a closed-door meeting with one of Biden’s top aides, Tom Perez, where they discussed New York’s priorities and the city’s needs.
According to the Mayor’s Chief of Staff, Camille Joseph Varlack, “It was a good conversation; we talked about sites, we talked about decompression, we talked about legal strategies and work authorization pathways.”
Federal Support and Financial Challenges
Adams has been seeking support from the federal government to cover the cost of providing shelter and other services to the migrants, but so far, the federal funds or promises amount to a mere $142 million.
DiNapoli’s report also revealed additional unfunded expenses New York City must handle, including housing vouchers, police overtime, expanding charter schools, Metropolitan Transportation Authority subsidies, and various social services.
The alarming financial picture could ultimately lead to higher city-funded costs than projected, even though the City’s current $112 billion spending package is balanced.
Future Implications
DiNapoli also warned, “The risk of recession, which has ebbed and flowed in recent years, remains but has not yet led to a decline in tax revenues. The City’s economic recovery is closely tied to its ability to provide necessary services,” emphasizing the significance of managing the migrant Crisis to New York City’s economic stability.
