There is no doubt that New York City needs help.

 

With a current unemployment rate of 20 percent and City government threatening even more layoffs, the City is going to need increased revenue, quickly.

 

There was outcry last week when City Councilwoman Vanessa Gibson and City Council Speaker Corey Johnson were alleged to have tried to save revenues by savagely cutting many areas of the City budget, an allegation they denied. They said they were looking for federal government assistance first.

 

In the absence of that, and knowing it might be difficult to get money from the state government, they came up with a novel approach – to borrow money instead. The current proposal is to issue municipal bonds with a 30-year payback term.

 

Now, there is a justification for this policy, generally speaking. While it does make sense to borrow money during a period of lower interest rates, should the City be allowed to get New York State’s permission to borrow money?

 

Would you borrow money from your credit card to balance your budget in case of an emergency? Should the federal government give money to New York City?

 

Recently, we heard from City government that the mayor’s wife hired several people who made over $100,000 a year. We also heard that the school chancellor hired several “executives” on salaries of over $100,000 a year. Maybe, we should fire all of them for a start!

 

Professor Anthony Rivieccio, MBA PFA, is the founder and CEO of The Financial Advisors Group, celebrating its 24th year as a fee-only financial planning firm specializing in solving one’s financial problems. Mr. Rivieccio, a recognized financial expert since 1986, has been featured by many national and local media including: Kiplinger’s Personal Finance, The New York Post, News 12 The Bronx, Bloomberg News Radio, BronxNet Television, the Norwood News, The West Side Manhattan Gazette, Labor Press Magazine, Financial Planning Magazine, WINS 1010 Radio, The Co-Op City News, The Bronx News, thisisthebronX.info, The Parkchester Times and The Bronx Chronicle. Mr.  Rivieccio also pens a financial article called “Money Talk”. Anthony is also currently an Adjunct Professor of Business, Finance & Accounting for both, City University of New York & Monroe College, a Private University. You can reach Anthony at 347.575.5045.