Federal assistance to keep people living in an area that they couldn't afford to. Sooner or later, something will have to give.
I found this interesting, NY city is 800 billion in debt
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Federal assistance to keep people living in an area that they couldn't afford to. Sooner or later, something will have to give.
You need to look at total debt included unfunded liabilities.
http://www.truthinaccounting.org/ne...york-city-is-61000-in-debt-for-every-taxpayer
Airport, I would think these long term debts are fairly safe. You would need to see the details to verify they are maintaining their schedules of debt as agreed to at time of issue. These large governments have many sources of revenue. They look at a need and the way it can be retired from which revenue source.
Basically two ways to pay for a need. Either issue bonds to pay from a source stream over a period of time. Or reserve an amount needed to pay when built on project date.
Raise money today and get today cost of building, and pay interest on debt over retirement period. Or, save/reserve funds over a projected period of time, accumulate interest earned. Build project later and use accumulated savings and earnings and pay current market price.
Example: Treatment plant needs replacement. Source of money to pay for project is gallons of water flushed. That current fund is used to pay operating cost and it is currently on break even. So you need to raise $10 million to pay for new plant, and you can accomplish that by increase tax 1cent or 5cents per gallon(Whatever is necessary).
Construct now or 10 years later? Save and pay later of finance and construct now. NY has obviously elected "now" for their projects over the years. Go to a firm that specializes in putting the lending package together, and you can pay over ten years from refuse fund the $10 million +interest and legal and other fees to be paid in 10 annual installments. Rating agency determines your ability to pay over 10 years from refuse and OKs Now borrow money as bonds are issued to repay. Sounds complicated, but it is very simple. City has money to construct and a payment schedule of the liability retirement over the agreed period.
Cities get money from state taxes. Use that to guarantee payment, and the proceeding above is a very simple walk thru. Reserve enough of the money the state sends to make payment when due to retire the debt per schedule.
That is the way the debts look fairly secure when you look at each payment and fund independently. If that fund source can met annual payment required. All is good to go.
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"When all unfunded liabilities and hidden debt are included, NYC’s total debt amounts to $167.6 billion after available assets are deducted."
No where near $800 bn. I actually know how this shit works.
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You're either not thinking clearly or not paying attention. The post was on NYC's debt. Not on their total financial picture. The figure you cited included asset offsets. That has zero to do with their actual debt.
And with all due respect, I don't think you know how this works. When you look at a balance sheet, it lists both short term and long term debt. This gives you the picture of total debt. Your asset offset has nothing to do with total debt. It doesn't change the total debt figure.
lol. Good grief. Good luck to ya buddy if you still think NYC is $800 bn in debt.
Was Bill talking about NYC + the City's residence? I missed the show , and cannot find what debt he was referring to.
They were businessmen and I knew that NY has been losing people, it wasn't near what they said but they were from Rochester and they may have been talking about the state outside of the city and they were saying what bad shape the state was in now. That the taxes should have been lowered a long time ago. It still doesn't change things, high tax states are losing companies to low tax states. I have seen indications that Calif is starting to have the same problem with the high cost of labor out there.
He was saying the city was in debt that there was no way it was ever going to be able to sustain it. 80 bill and he gave the race stats, I think the whites were 34% of the population and then there was a breakdown after that by blacks, hispanics and asians. He also said that people were receiving federal and state assistance to the tune of between 500-600 mill per month. In essence, govt was subsidizing the people to live there. They couldn't afford to live there if they had to pay for it themselves. He was saying that New Yorkers having their lifestyles subsidized by everybody else. Said the ss/disability was a racket.
You have 80 and they are using 800 above. Of course one digit makes a hell of a difference. What is the figure we are trying to reconcile to?
fortunately or un(depending on the way we see it), the fed has funds that are untold and the president has discretion on the use. The fed does not act exactly as the constitution calls for. Until recently, I believed all spending started in the House. Some of the payments to Iran disproved that.
It's simple math. California and Illinois just need to raise the state tax to 90%. Certainly they won't have a problem with that.
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