Planned cuts to New York City’s capital plan announced in the wake of the fiscal downturn in 2008 have not materialized, the Citizens Budget Commission said last week on its website.
“Despite two rounds of 'cuts,’ spending commitments are poised to reach an all-time high in fiscal year 2011,” Maria Doulis, a senior research associate for the fiscal watchdog organization, wrote on its blog.
Since 2008, “at least two major reductions to the capital plan were announced; however, planned reductions have not been realized.”
In 2008, the city reduced its planned capital commitments for fiscal 2011 to $8.4 billion from $9.2 billion. Those commitments were reduced again in 2009 to $6.2 billion in Mayor Michael Bloomberg’s preliminary budget proposal, Doulis wrote.
The final budget proposal that year reversed course, and capital commitments for the current fiscal year are now projected to exceed $12 billion, a record high, she wrote.
“Since the mayor began 'cutting’ the capital plan, average yearly commitments grew to $12.2 billion — 26% greater than average yearly commitments between fiscal years 2006 and 2008,” Doulis wrote. Capital commitments for parks, technology and equipment and economic development will reach all-time highs in fiscal 2011, she added.
Debt service on the city’s general obligation bonds, lease debt and bonds issued by the New York City Transitional Finance Authority is projected to rise to $6.96 billion in fiscal 2013 from $5.35 billion in the current fiscal year, according to city budget documents.
