CNN Host Critiques Spending in Major Cities
On Sunday, CNN’s Fareed Zakaria expressed strong criticism of New York City and Los Angeles, describing both as “underperforming” despite significant spending increases.
New York City’s Democratic Mayor Zoran Mamdani has put forth a budget of $127 billion. Zakaria pointed out that both cities, similar to Chicago, are facing what he termed “unaffordability,” contrary to the promises made by their mayors. He noted that, “New York is a prime example of the issues Democratic leaders tend to avoid. These blue cities keep spending more while providing less, pushing financial challenges down the road.”
Turning to Los Angeles, Zakaria highlighted the city’s homelessness budget of roughly $950 million for the upcoming fiscal year. He mentioned, “In 2023, the Los Angeles Department of Homeless Services saw a 9% increase in homelessness countywide and a 10% rise within the city itself. A report from the Associated Press indicated that since 2015, this rate has soared by 70% countywide and 80% in the city.”
Despite the enormous funds allocated, Zakaria pointed out ongoing public dissatisfaction, referencing an audit that reviewed $2.4 billion in homelessness funding. “Officials struggled to track where the money was spent and what the outcomes were,” he said. He also touched on Chicago, where low mayoral approval ratings coincide with a looming pension crisis.
Since 2015, California’s homeless population has surged by 60%, even with substantial federal funding flowing into cities like Los Angeles. Tragically, 20 individuals lost their lives to the cold in January after Mamdani decided to stop clearing homeless encampments.
Mamdani’s proposed $127 billion budget includes a 9.5% property tax increase to cover a $5.4 billion budget gap, rejecting a proposal from Democratic Governor Kathy Hochul to tax higher-income individuals and corporations.
Zakaria acknowledged that Mamdani’s focus on affordability, especially in housing, is sensible, but he cautioned against relying solely on government subsidies. “While subsidies are essential, they seem to inflate rental costs rather than mitigate them. For instance, spending on rent assistance grew from $263 million in fiscal year 2020 to $1.34 billion recently,” he explained. “That’s a huge increase, yet housing challenges persist.”
He also referenced Matt Iglesias, who argues that cities should have the capability to construct more market-rate housing easily. This, Zakaria suggested, could attract more residents, broaden the tax base, enhance education, and ultimately alleviate budget constraints.
Additionally, Los Angeles Mayor Karen Bass faced scrutiny during a press conference about pothole repairs when a journalist pointed out inconsistencies in her statements. Bass has also been criticized for spending over $1 million on a two-room bathroom near Runyon Canyon.
