Bloomberg vs. Cuomo

Budget cuts proposed over the weekend by Governor Cuomo triggered a strong reaction from the Mayor of New York, Michael R. Bloomberg. “We are the jewel of the financial crown, if you will, in New York State,” Mr. Bloomberg said after a City Hall news conference. “We’re the one that’s generating the money,” said Bloomberg. Bloomberg doomed the proposed budget cuts for the city of New York as outrageous given that New York City is the economic power house of the United States. The budget proposed by Cuomo included declines in education which was one of the sectors which Bloomberg wanted to allocate more funds to. Defendants of Cuomos position said that the city's revenue has actually increased therefore the proposed cuts are reasonably. Bloomberg responded to this by saying that in order to remain solvent the city has to keep some money in reserve. “We have to have some money put aside for emergencies,” said Bloomberg. Even though the state of New York belongs to a market economy (the United States), this situation can be related to the planners headache concept that we've gone over in class. Allocating less funds to New York City and reallocating them elsewhere is one of the headache's that the Governor of New York has to take care of. Reallocating government funds frome education into perhaps another industry is another headache that the Governor has to take care of.