New York budget swells to $104 billion despite Adams-ordered 3% cuts

The city’s projected spending will rise to $104 billion this fiscal year — up about $3 billion — despite broader budget cuts ordered by Mayor Eric Adams in September, City Hall said Tuesday.

The additional spending includes up to $1 billion for the refugee crisis, with city budget officials counting on long-sought federal money to help cover the costs.

In a prepared statement, City Hall blamed the migrant crisis and inflation for the string of looming fiscal cliffs, as well as “increased pension costs due to stock market losses” and expected hikes in staff salaries and healthcare bills.

The plan was unveiled a day after Adams said neither President Biden nor Gov. Kathy Hochul were willing to discuss the issue of migrant aid for New York City during “campaign season” because they “appeared to be more focused on going from one place to the next.” to run to others.”

It also prompted a somber warning from state comptroller Tom DiNapoli, who said the move posed a “material risk” to the Big Apple’s fiscal 2023 budget that “could create spending pressures” for years to come.

“Furthermore, despite a significant deterioration in the economic outlook since its last update in April 2022, including on Wall Street, the city is not yet forecasting any further weakening in revenue, which will likely result in a reduction in forecast revenue in its preliminary.” [fiscal] Budget 2024 early next year,” he said.

migrants
The additional spending includes up to $1 billion for the refugee crisis.
Matthew McDermott

DiNapoli also berated former Mayor Bill de Blasio for the city’s “missed opportunity to set aside additional money in its revenue stabilization fund.” [fiscal] 2022, when revenues significantly exceeded forecasts.”

The city’s fiscal plan update revealed that local government only reduced spending by less than $1 billion, falling more than $1 billion short of Adams’ 3 percent target.

The NYPD, grappling with chaos on the subways and spikes in every felony category except homicide, has slashed $69 million from its $5.6 billion budget, mostly by leaving some vacancies before they were occupied.

The Department of Education cut $153.8 million from its $31 billion budget, with $89.8 million in savings from the same strategy.

Manuel Castro, Commissioner for Immigration Affairs in New York
City Hall blamed the migrant crisis, inflation and other obstacles for the fiscal problems.
AP/Bebeto Matthews

The largest single cut, $201 million, was reported by the Department of Social Services, which relied on a budget trick that transferred $161 million in unused funds from fiscal 2022 back to the city.

Meanwhile, the upcoming fiscal 2024 budget deficit has been set at $2.9 billion in budget documents, compared to $4.2 billion two months ago.

But the next two projected fiscal deficits have risen significantly, with the fiscal 2025 deficit projected to be $4.6 billion, up from $3.7 billion.

The picture for fiscal 2026 is even grimmer, with an expected deficit of $5.9 billion, up almost 50% from the previously forecast $4 billion.

Venezuelan migrants
The city’s fiscal plan update revealed that local government only reduced spending by less than $1 billion.
Matthew McDermott

Citizens Budget Commission President Andrew Rein said, “The city’s long-term financial capabilities are precarious,” echoing DiNapoli’s concerns about the “risk to the city’s finances” if federal or state aid doesn’t cover the migrant crisis.

Rein said “some savings” resulted from budget cuts ordered by Adams, which he called “a good start” but “not nearly enough to stabilize the city’s finances.”

“The city needs to get much more serious about becoming more productive and efficient, and in the long run it needs to work with unions, restructure operations, use technology, etc.,” he said.

In a prepared statement, Adams said: “Fiscal discipline has been and continues to be a hallmark of my administration.

“The city is facing significant economic headwinds that seriously threaten our fiscal stability, including rising pension contributions, expiring employment contracts and rising healthcare spending – and we are taking decisive action to address these challenges in the government’s first November financial plan,” he added .

https://nypost.com/2022/11/15/ny-budget-swells-to-104b-despite-adams-ordered-3-cuts/ New York budget swells to $104 billion despite Adams-ordered 3% cuts

JACLYN DIAZ

USTimeToday is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – admin@ustimetoday.com. The content will be deleted within 24 hours.

Related Articles

Back to top button