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Budget Balancing in Difficult Times: The Case of the Two New Yorks
Author(s) -
Brecher Charles,
Horton Raymond D.,
Mead Dean Michael
Publication year - 1994
Publication title -
public budgeting and finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.694
H-Index - 30
eISSN - 1540-5850
pISSN - 0275-1100
DOI - 10.1111/1540-5850.01008
Subject(s) - budget constraint , revenue , balanced budget , state (computer science) , economics , politics , public economics , constraint (computer aided design) , business , microeconomics , finance , political science , computer science , engineering , law , mechanical engineering , algorithm
The objective of governments is to efficiently provide essential services and infrastructure to their jurisdictions at a competitive tax rate within the constraint of a balanced budget. In recent years, several states have found it difficult to maintain this standard. This article examines the nature of the problem in the overlapping jurisdictions of New York City and New York State. Specifically, it explains the nature of projected budget gaps that have emerged in New York, and describes how the two New Yorks' political leaders have managed their budgets in recent years. Furthermore, this article demonstrates that expenditures significantly exceed revenues, thus leading to inevitable budget gaps, and that policies designed to close the gap have harmful consequences.