NYC orders third round of budget cuts this year
Mayor Eric Adams this week added another tier to the city’s financial belt, ordering most agencies to leave thousands of jobs vacant as the city looks to close a $2.9 billion budget shortfall in the next fiscal year — exacerbated by the migrant crisis City’s $1 billion deal and cut with local unions.
A Monday letter from Budget Director Jacques Jiha to agency heads, obtained by The Post and first reported by Politico, said the mayor’s Office of Administration and Budget is cutting by 50% full-time positions that were vacant late last month would.
The cuts mean about 4,700 jobs would remain vacant, but the directive will not affect teachers or uniformed members of the police and fire services.
The letter also directed agencies to self-fund new initiatives and programs and to “submit detailed proposals” outlining funding by December 5.
The news came after Adams ordered a 3% budget cut in September to save $2.5 billion over the next two fiscal years, in addition to other sweeping cuts made by the new mayor in January.
Jiha cited pending settlements with the city’s unions and New York’s estimated $1 billion migrant housing bill as the basis for the new cuts, along with broader economic woes.
“Until the federal and state governments intervene, we will bear the entire cost of providing mandate assistance to asylum seekers,” he wrote.
“Furthermore, local and national economies are weak, financial markets are declining and we face rising healthcare costs, high energy prices and elevated inflation.”
The city’s spending rose about 3% to $104 billion in fiscal 2023, which began this summer. The city’s deficit of nearly $3 billion could swell to $6 billion in fiscal 2026, according to budget projections.
The increase prompted a somber warning from New York comptroller Tom DiNapoli, who said the bloated budget “could generate spending pressures” in years to come, as he called for filling city coffers to “balance the need to provide municipal services.” “.
“Without the hard-working individuals keeping this city running, critical and essential services to our children and most vulnerable residents could be impacted,” DiNapoli warned earlier this month.
https://nypost.com/2022/11/22/nyc-orders-third-round-of-budget-cuts-this-year/ NYC orders third round of budget cuts this year