Mayor Bill de Blasio voiced credible fears of an economic downturn and cuts in aid from DC and Albany on Thursday as he rolled out his preliminary spending plan for the coming year. So why on Earth does he want to raise spending, yet again?
Even as the city is seeing a surprise drop of more than 20 percent in its income tax take, Hizzoner’s plan comes in at a hefty $92 billion — or $94.1 billion, after accounting for prepayments, according to the city’s Independent Budget Office — for fiscal year 2020, which begins on July 1.
That counts $69.8 billion from city revenues, a 3.4 percent jump over last year and a stupefying 33.5 percent over Mayor Michael Bloomberg’s final budget, or more than four times inflation. (Total spending would grow a “mere” 28 percent since Blas took office.)
True, de Blasio’s prior budgets goosed spending even faster. And this year, for the first time, he’s eyeing some agency cuts.
Also true, pay hikes for city employees account for a good chunk of the new costs. But then, he was the one who OK’d those hikes in the first place — and also the guy who has let the number of city employees soar to record highs.
On Thursday, de Blasio defended the headcount growth, claiming the extra employees are essential to running the city. That’s debatable, especially when it comes to the boatloads of “special assistants” he has hired. In any event, if the money runs out, their heads may be the first on the chopping block.
“In this uncertain economic environment,” notes Citizens Budget Commission President Andrew Rein, “greater recurring savings” are needed to “make certain that the city can provide critical services to New Yorkers in both good times and bad.”
He called for “much bolder action” and limiting spending growth to inflation.
De Blasio has been lucky to benefit from a strong economy his entire time in office, but he’s used the good fortune of booming tax revenues to bloat spending. That leaves the city on shaky financial ground when a (historically overdue) slowdown hits.
If de Blasio’s luck holds, disaster won’t strike till after he steps down in 2021. But New Yorkers will still be stuck with the mess he’s made.