CBC Statement on the NYC FY 2020 Executive Budget
Citizens Budget Commission (CBC) President Andrew Rein issued this statement on the New York City Executive Budget on behalf of CBC:
"Mayor de Blasio’s stay-the-course budget does not take the steps needed to preserve services or forestall tax increases in the eventual hard times.
City-funded spending increases roughly 3.6 percent, which is lower than the Administration’s prior average 4.6 percent increase. The highly anticipated Program to Eliminate the Gap provides savings, but fails to deliver resources needed to address any upcoming downturn. Its size and components are in line with the Administration’s prior savings programs. A majority of the savings are from expense reestimates, increased revenues, funding shifts, and debt service savings, rather than from improved efficiency. Credit is due for a reduction in headcount of 1,600 vacant positions on a recurring basis.
Contingency and capital reserve funds in the future are budgeted at $1.25 billion annually, continuing the Administration’s policy of funding at this higher-than-mandated level. However, this amount pales in comparison to a potential $15 billion to $20 billion three-year revenue shortfall that a recession could drive.
The 10-year capital strategy grows $12.8 billion from the Preliminary Budget and now totals $116.9 billion. However, the strategy could benefit from more comprehensive planning and prioritization focusing on state of good repair work."