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State Comptroller Releases Economic Report on The Bronx

NYS Comptroller Thomas DiNapoli speaks at the NYS Association of Counties 2020 Legislative Conference.
Image courtesy of the Office of the NYS Comptroller via Flickr

The COVID-19 pandemic hit the Bronx harder than any other borough by several measures, according to an economic analysis released on June 8 by the New York State comptroller, Thomas P. DiNapoli, with one finding showing that only 61.3 percent of households had reliable internet, compared to a range of 69.5 to 78 percent across the city, as previously reported by Norwood News. 

 

To address this, the comptroller’s office reported that as part of a recent deal, the City expects fiber-optic infrastructure to reach 500,000 new households citywide (no deadline was specified), including households in Norwood, Fordham, University Heights, Bedford Park, Jerome Park, Kingsbridge Heights, Morris Heights, Mount Hope and Hunts Point.

 

The report shows that the Bronx had been on an upward trajectory before the COVID-19 virus hit the City, but that the pandemic stalled those previous economic gains and has even threatened to reverse them. DiNapoli said the borough, that is home to a fifth of New Yorkers, has proven its resilience in the past, with what he called “its long period of renewal aided by government efforts,” but said the road to recovery, going forward, will take time.

 

Meanwhile, Bronx Borough President Ruben Diaz Jr. said prior to the pandemic, the borough had record low unemployment, and development was at an all-time high. “We were trending in the right direction,” he said. “While the pandemic hit our borough hard, we will come back strong and move forward with large infrastructure projects including the Bruckner-Sheridan Interchange, four new Metro North stations, the renovation of Orchard Beach, and various development projects.”

 

DiNapoli urged City and State leaders to prioritize a recovery in the Bronx by addressing its needs including:

  • continued aggressive borough-wide vaccination efforts;
  • sustained outreach for resources such as food distribution and rent relief;
  • targeted programs aimed at helping those most affected by COVID-19;
  • close tracking of relief dollars to ensure that the Bronx receives its fair share that corresponds to the serious damage it has sustained;
  • continued investment to aid recovery.

 

COVID-19 vaccination rates per NYC borough
Source: NYC Department of Health & Mental Hygiene

As reported by Norwood News, the Bronx continues to have the lowest vaccination rate across the City. We also reported on a recent Manhattan Chamber of Commerce study that found that Bronx businesses received just 7 percent of NYC’s PPP loans.

 

Meanwhile, according to the state comptroller’s analysis and report, The Bronx is one of City’s most diverse boroughs “with the highest share of minority residents of any borough (more than 90 percent).” Over the past 20 years, the borough grew faster than any other, driven in large part by immigration. From 2000 through 2017, the Bronx’s population increased by 10.4 percent to 1.47 million residents. During that time, the borough’s immigrant population rose by 38.8 percent. From 2017 through 2019, the overall population saw a slight decline from 1.47 to 1.42 million, in line with declines citywide.

 

The Bronx experienced steady employment and new business growth from 2009 through 2019. Employment grew by 20 percent amounting to 249,000 jobs in 2019. Although the borough trailed the citywide growth rate of 29.9 percent for employment, it was the only borough to show no decline in employment during the Great Recession. The steady growth in employment (pre-pandemic) was heavily concentrated in four sectors: health care, social assistance, leisure and hospitality, and retail.

 

Over 70 percent of Bronx residents work in essential or face-to-face industries, the largest of which include health care and social assistance (25.9 percent); retail trade (10.2 percent); accommodation and food services; (9.6 percent) and transportation and warehousing (7.7 percent).

 

The borough is comprised of mostly small businesses, and in the 10 years leading up to the pandemic, businesses in the borough increased by 15.3 percent. This was a faster growth rate than seen in both the boroughs of Manhattan and Staten Island.

 

Despite the impressive gains the Bronx experienced, challenges and inequities remain. They have made the borough particularly vulnerable to the negative health and economic outcomes of the pandemic. The pandemic laid bare these stark inequities as minority Bronx residents faced the highest rate of hospitalizations and deaths.

 

Change in cumulative rates for COVID-19 cases, hospitalizations and deaths, by race and ethnicity in The Bronx. 
Source Office of the NYS Comptroller

Certain conditions put individuals, and thus communities, at higher risk of contracting COVID-19 and of experiencing more severe outcomes. These conditions include poverty, unemployment, crowded housing, underlying health conditions and access to healthcare services. The Bronx had the highest rate, nearly 42 percent, of residents who faced three or more risk factors, as previously reported by Norwood News. The prevalence of these risk factors reflects residents’ relatively poorer access to quality healthcare prior to the pandemic, which contributed to the borough’s relatively high rate of hospitalizations and deaths from the virus.

 

Income and housing also remain critical challenges facing residents. The Bronx’s $41,400 median household income is well below the citywide median of $69,400, and its 27.3 percent poverty rate is far higher than the citywide average of 16.4 percent. Housing affordability is a serious issue facing many residents. The borough has the largest share of households who rent (80 percent) among all counties in the state, 61 percent of whom are rent-burdened, paying more than 30 percent of their income towards rent.

 

The full economic impact of the pandemic on the Bronx will take years to become known, according to the state comptroller’s analysis, but many residents are already experiencing hardships. Even before the pandemic hit, there were high levels of evictions and nonpayment filings. Bronx residents saw the highest levels of eviction of any borough in both 2018 (6,860) and 2019 (5,850).

 

Many borough residents work in essential and face-to-face sectors, which increased their risk of contracting COVID-19 and of losing employment to the shutdown. Residents were also far more dependent on the subway system than other New Yorkers. In all but one month, October 2020, the level of ridership was higher in the Bronx than in all other boroughs.

 

The sudden and dramatic closure of businesses across New York City hit the leisure and hospitality sector the hardest, as an earlier report from DiNapoli detailed. In the Bronx, it meant the loss of 9,600 jobs ,  a 45.6 percent drop   in that sector by the summer of 2020.

Change in employment in The Bronx by sector from second quarter 2019 to second quarter 2020.
Source: Office of the NYS Comptroller

 

The borough also had the highest unemployment rate throughout the pandemic. Unemployment averaged 5.4 percent in the first three months of 2020, then shot up to a peak of 24.6 percent in May 2020, before gradually declining to 15 percent in April 2021. The extension and increases in unemployment payments have been particularly important resources for Bronx residents who remain out of work.

 

Most businesses in the borough are small businesses, and the measures put in place to combat the health impacts of the COVID-19 virus forced many of these small businesses to close. Some business owners were able to rely on economic relief to stay afloat. Programs such as the Paycheck Protection Program (PPP) loans served as vital resources but were slow to reach businesses in the borough.

 

The report found that better targeting of more recent rounds of funding and continued outreach regarding the program have led to an improvement in critical resources reaching those in need. According to the comptroller’s office, existing federal, State and City programs to support businesses and individuals should continue to be adjusted for and communicated to those hardest hit, including residents in the Bronx.

 

The report concluded that improved outreach and delivery of support programs were welcome signs as the borough sets its sights on recovery, but that there is still a lot more that needs to be done in order to accomplish a true recovery. According to the comptroller’s office, the Bronx’s continued revitalization and improvement will serve as an important benchmark for measuring the city’s success in achieving an equitable recovery for all New Yorkers.

 

Additional findings in the report include the following:

  • As of May 25, 2021, only 44 percent of the borough’s residents were fully vaccinated. 52 percent of Bronxites have received at least one dose.
  • As of 2018, 17.5 percent of all borough residents, and 23.5 percent of all Bronx children, were estimated to have limited or uncertain access to adequate food, the highest rate among all boroughs.
  • Each Bronx neighborhood had rates similar to, or higher than, the citywide average for diabetes, obesity and hypertension, which are suggested to be associated with more severe cases of COVID-19.
  • Enrollment in the Bronx for prekindergarten through 12th grade fell by 6.9 percent in the 2020-2021 school year, compared to 4.9 percent citywide, with a concentration in younger grades. Pre-K enrollment declined by 22.8 percent. Student attendance also dropped during the height of the pandemic, but largely returned to pre-pandemic levels by Spring 2021.
  • As of May 16, 2021, year-to-date major index crime in the Bronx was up 3 percent when compared to the same period last year, while citywide major index crime fell by 4 percent. Shootings have increased citywide by 82 percent and by 152 percent in the Bronx over the same period.
  • PPP loans for independent contractors, sole proprietors and self-employed individuals accounted for 55.5 percent of all first-draw loans approved for the Bronx and for 19.9 percent of first-draw loan dollars, both highest among all boroughs.
  • Revenue declines during the pandemic resulted in the Metropolitan Transportation Authority (MTA) suspending the start of most new capital projects. This delayed the start of the Penn Station Access project to expand Metro-North Railroad service in the Bronx, but the project received important federal approvals in 2021. The MTA’s work to make stations compliant with the Americans with Disabilities Act has also advanced at a slower rate than planned.

 

The full report can be read by clicking on the following link: Recent Trends and Impact of COVID-19 in the Bronx. A Spanish language version is also available here: Tendencias recientes e impacto de la COVID-19 en el Bronx.

 

 

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