CBC Recommends Budget Strategies for Mayor de Blasio's Second Term
New Federal Policies and Plans for New City Programs Will Strain City Resources;
City-Funded Expenditure Growth Should Be Minimized
New York, NY – January 29, 2018 – The Citizens Budget Commission (CBC) today released “A Budget Strategy for Mayor de Blasio’s Second Term,” which recommends strategies for Mayor Bill de Blasio as he prepares to release the first budget of his second term.
The Preliminary Budget for Fiscal Year 2019 is being developed in the wake of a federal tax overhaul that will impact property values, individual tax liabilities, and business activity. In addition, rising expenses, such as debt service, pensions, and retiree health insurance, and spending for new initiatives, including 3-K for All and closing Rikers Island, will place a strain on city resources.
“The City was showing signs of slower economic growth even before proposed federal spending cuts and the tax overhaul,” said Citizens Budget Commission President Carol Kellermann. “As the Mayor prepares his budget, the City needs to prioritize containing costs, particularly for employee compensation, and implementing initiatives that can generate recurring savings.”
In order to reach, and then sustain, budget stability in the Mayor’s second term, the budget should address four key areas:
- Containing spending growth;
- Building reserves;
- Reducing the size of the capital plan and the cost of capital projects; and
- Strengthening finances at the New York City Housing Authority and NYC Health+Hospitals.
CBC developed a series of questions to assess whether the City is implementing these strategies, including:
- Has the City reflected the projected impact of federal tax policy on the national and local economy? How are City revenues expected to be impacted?
- How did the City close the budget gap for fiscal year 2019, currently projected to be $3.2 billion? Is it showing a surplus roll from fiscal year 2018 into fiscal year 2019? What are the sources of those funds?
- Has the Citywide Savings Program grown since November?
For the full list of questions and to learn more about the recommended strategies, read “A Budget Strategy for Mayor de Blasio’s Second Term.”