Original op-ed can be found here.

Clear skies and bustling streets are back in New York City. But even as we celebrate the return of warmth and economic activity, storm clouds are on the horizon.  As we move past two years of a devastating pandemic and the economic ramifications that came with it, our recovery is uneven. Global conflict, rampant inflation, supply chain disruptions, and a declining stock market muddy the economic picture.
 
The Federal Reserve is aiming for a “soft landing” by raising interest rates in the hopes of combating inflation without pushing the economy into recession—but even the sunniest scenarios involve slower economic growth.
 
New York City needs to be ready to protect the most vulnerable in the next economic storm. So we urge the mayor and the city council to put a serious sum into our city’s rainy day fund as they conclude budget negotiations this month, while the sun is shining. Too often the political winds of the moment shape our city’s budget, with savings for the future left as an afterthought.

That’s natural: when there’s money in hand, most of us would rather spend than save. But when times are tough and revenues come up short, essential programs that New Yorkers rely on—for schools and children, public safety, even the social safety net—can be on the chopping block. It’s precisely when a recession hits that you need those programs the most.
 
To help protect New York City from those painful choices, the comptroller and Citizens Budget Commission propose adding at least $2.5 billion to our rainy day fund this year and adopting a steady formula for future deposits.
 
The city has the funds available for such a large deposit right now. Thanks to federal stimulus spending plus stronger-than-expected personal income and sales tax revenues, our city’s coffers are strong for the time being, with $3.3 billion more available in fiscal year 2022 ending on June 30, as well as $1.5 billion more next year. That’s plenty to support programs that New Yorkers need now, spend to support a stable recovery, reduce ongoing fiscal risks such as unfunded potential raises, and put money away for the tough times inevitably ahead.
 
Still, a “one-and-done" deposit this year will not be sufficient to protect New Yorkers when they will be their most vulnerable. We both support adopting an annual deposit structure that would set aside a portion of the city’s revenue growth toward long-term reserves in years when the economy is growing. While our proposed formulas differ slightly, their spirit aligns. The city should set a target size, mandate deposits and specify criteria for when these funds can be withdrawn.
 
Looming clouds are rolling in. Ongoing inflation, a global economy hampered by war, persistent supply-chain delays and a weakened stock market threaten our future revenues. Closer to home, unemployment remains nearly double the national average, and far higher for Black New Yorkers. Small businesses are still treading water, while the inequality the pandemic exacerbated continues to grow.
 
Let’s prepare a strong life raft by adding at least $2.5 billion to our reserves now so all New Yorkers can safely ride out the next storm and adopt a deposit formula to serve as our sea barrier against future fiscal hurricanes.
 
Brad Lander is New York City comptroller. Andrew Rein is president of the Citizens Budget Commission.