By Ilana Siyance
On Monday, New York State budget documents revealed that City Hall is still in dire fiscal straights. As reported by the NY Post, a $3.8 billion deficit is projected for next year, even despite an unexpected increase in tax revenues. Earlier estimates from Mayor Bill de Blasio’s budget writers estimated a $4.2 billion deficit, but a $748 million surge in tax revenues for the current budget year helped ease the burden.
The city’s budget gap has been cut by close to $400 million, but the trim includes deals struck with city unions to push off $722 million in payroll costs onto the upcoming budget, in a bid to avoid layoffs this year. Some agreements made include the deal made with the powerful teachers union, the United Federation of Teachers moving back $450 million in payments, and with the city’s trash haulers union, the Uniformed Sanitationmen’s Association, delaying $27 million in payroll costs.
The city is slated to spend a total of $92 billion in the 2021 budget. That budget includes an inflow of $3 billion from the federal government as aid for coronavirus response. As of now, the total budget is expected to reach $97.4 billion for 2022.
The state is under fire from good government groups who criticized the ploy, saying it is just delaying the inevitable by pushing off costs to the next budget in hopes of additional multi-billion dollar coronavirus aid from the feds. The plan depends on lawmakers making a deal for an enormous rescue package for cash-strapped cities and states throughout the country. Opponents warn that this can exacerbate future deficits. “Paying bills late does not save you money,” said Andrew Rein, the head of the Citizens Budget Commission. “We’re just going to have the same problem we have today, but instead we’re going to have it tomorrow.” Mayor de Blasio’s tenure will end after 2021, potentially leaving a budget mess for the next incoming mayor.
“Right now, we don’t have a way to close that gap without federal support. That’s why it’s so crucial that we see action at a federal level,” said Mayor de Blasio on Monday during his daily press briefing. He also expressed hope that a change in the White House can rescue the city from its fiscal woes. “As chances for a robust federal stimulus rise with the incoming Biden administration, New York City has still gotten to work making tough choices to balance the budget,” the Mayor said.