Migrant Influx Poses Fiscal Test For New York City
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New York City facing billions in extra costs to shelter and support migrants. Projected to add $5B this fiscal year and $6B next year.
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Mayor Adams warns crisis "will destroy" NYC, but credit analysts say city in good financial shape. Has $8B in reserves to help cover costs.
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City has strong AA credit rating after rebuilding from 1970s bankruptcy and 9/11. Has closed budget gaps before.
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Adams asking agencies to cut budgets 5% as city seeks to manage migrant costs. Also seeking more federal and state aid.
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Investors reducing NYC bonds as yields not high enough to compensate for risks. But optimism city will get more state/federal support.