Carey is best remembered for his successful handling of New York City's economic crisis in the mid-1970s. Carey came into office with New York City close to bankruptcy and is credited with bringing business and labor together to help save New York City from the fiscal crisis. Carey managed to keep the growth of state spending below the rate of inflation through his frequent use of line-item vetoes and fights with the New York State Legislature, which was at the time divided between a Republican-controlled Senate and a Democratic-controlled Assembly.