The Real Deal New York

Liu pushes city to capitalize on low interest rates and launch capital projects construction

May 10, 2012 06:00PM

City Comptroller John Liu called yesterday for the city to move forward with school construction projects and other capital projects that have already been approved, and capitalize on low interest rates, Crain’s reported. Liu said that his $2 million borrowing plan to speed up the projects could create 15,000 jobs over the next two years.

As previously reported, New York City construction spending fell to $27.4 billion in 2011. An unspecified number of unions and construction agencies said they support Liu’s plan, citing a need to put people to work and to cut long-term borrowing costs.

Fiscal watchdogs said they’re wary of the plan, as the city’s capital budget is already high and that speeding up these approved projects will beget more spending. The city’s debt service is currently at $6.1 billion this fiscal year, according to Crain’s, and is slated to rise to nearly $10 billion by 2016. [Crain’s]