The city is in better fiscal shape than Mayor de Blasio projects, but the cost of labor settlements remains a big question mark, according to the nonpartisan Independent Budget Office.
The agency said the city is headed toward a $1.8 billion surplus this fiscal year, which ends on June 30, $131 million above the mayor’s estimate.
In the fiscal 2015 budget of $73.9 billion that begins July 1, the first full spending plan under de Blasio, the surplus was projected at $833 million.
The deficit for fiscal 2016 was put at $1.6 billion — $934 million less than the mayor projected in his budget.
“The executive budget realistically acknowledges the risks we face and projects moderate revenue growth, while moving forward core priorities,” said Amy Spitalnick, a spokeswoman for the mayor’s budget office.
The IBO analysts said late changes to the budget prevented them from assessing the new teachers’ contract, which the administration says will cost $9 billion over nine years.
“Numerous questions remain about details of the proposed labor pact, detials that could significantly alter estimates of just how much the settlement could cost in coming years,” the analysts said.