We have received the following response from the office of Mayor Matt Ryan of Binghamton, New York. The response is in regard to our letter, Letter to Mayor Matt Ryan of Binghamton on potential effect of debt ceiling.
The following is the VERBATIM statement, as is our policy to provide.
Andrew Block – Executive Assistant to the Mayor
We don’t know the full implications of a federal default, but we do know that they’d be severe, and even dire. As far as the City of Binghamton is concerned, such a default would jeopardize our bonds, i.e. the loans we have taken out for capital projects like street reconstructions, sewer replacements and vehicle purchases. And if the bond market can’t deliver as promised, then municipalities will lose the revenue to pay for such projects, and we don’t really have any alternative sources at this time. In the end, a federal default will put the breaks on a great deal of important municipal business in our state and nationwide, and that’s why we’re urging our federal leaders to avoid a default without hurting working families, the poor, the elderly, the sick and others who are most vulnerable. The Mayor strongly believes a responsible approach centers on two points: first, on the spending side, and as the US Conference of Mayors has resolved, rein in our out-of-control war spending; second, on the revenue side, end the tax breaks for corporations and affluent households that have transferred 25% of the nation’s wealth to the top 1% of income recipients. The US has the widest wealth gap of all industrialized nations, the bottom 90-99% of earners are paying the price, and this trend is simply unsustainable if we want to live up to our nation’s guiding ideals.
We thank the office of Mayor Ryan for thier response to this critical issue. We suggest that readers review our questions, and the response above, to gain insight on how a potential failure to raise the debt ceiling may potentially affect Binghamton, NY.
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