New York City's comptroller wants the mayor to pull the executive order he issued in March, when the city needed to quickly purchase ventilators and other coroavirus-related equipment.
New York's mayor announced sharp cuts, a draw on reserves and a call for further assistance from Washington.
Negative outlooks trigger questions about other reeling areas in the capital markets crosshairs.
The mayor cited COVID-19 as a spending priority while cases in his city represent more than one-third of the nation's total.
The comptroller called for passage of a federal rescue bill and measures to shore up the city budget.
The comptroller, citing projected losses in entertainment and tourism while the city is virtually closed, called for a savings target of 4% of tax levy-funded agency spending.
How severe a financial hit New York City will take during the COVID-19 pandemic is as much of an unknown as the degree of virus spread.
Chairman Patrick Foye says that the outbreak has no material effect for now, and the authority promises to continue timely disclosure.
Looming state budget cuts combined with the COVID-19 threat could have a negative impact on NYC's economy.