New York City's revised four-year financial plan shows substantially smaller out-year gaps than the city projected in June, said state Comptroller Thomas DiNapoli.
DiNapoli cited higher tax revenues and lower projected pension and debt service costs.
"While there is always the possibility of an economic setback during the years covered by the four-year financial plan, the city has substantial reserves which would cushion the impact," DiNapoli said in his
The financial plan, covering fiscal 2015 through 2018, incorporates developments during the first quarter of the current fiscal year. The city projects a $105 million surplus in 2015, which DiNapoli expects will widen throughout the year, given the city's conservative assumptions and continued local economy strength.
In June, the city projected budget gaps of $2.6 billion, $1.9 billion and $3.1 billion in fiscal 2016 through 2018, respectively. The city since has increased its revenue forecast by more than $1.1 billion for fiscal 2015 through 2018, and has lowered its expenditure forecast by $1.7 billion.
Moody's Investors Service rates the city's general obligation bonds Aa2. Fitch Ratings and Standard & Poor's rate them AA. Moody's said the city's gaps "are manageable given the time horizon it has to close them."
Mayor Bill de Blasio has reached new contract agreements with 71% of the municipal workforce. In May, it reached an agreement with the United Federation of Teachers, which has set a pattern. The city recently reached a tentative agreement with a coalition of eight unions that represent superior officers in uniformed agencies. City officials and the union that represents police officers have begun binding arbitration.
"Independent monitors and raters have all repeatedly affirmed that Mayor de Blasio has made fiscal responsibility a foundation of this administration," said Amy Spitalnick, director of public affairs for the Mayor's Office of Management and Budget. "Now, after securing major debt service and pension savings, combined with strong revenues, these gaps are even smaller. Regardless, the de Blasio administration is always looking for additional cost savings and efficiencies."
