State Comptroller to N.Y. City: Approach FY17 with Caution

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​New York City's projection of a $3.4 billion surplus for fiscal 2016 comes amid rising concerns for the near future with a slowing economy domestically and abroad, according to a report by state Comptroller Thomas DiNapoli.

"Mayor (Bill) de Blasio and the city are right to approach fiscal year 2017 with caution, given that the economy appears to be slowing and the risk of an economic setback is elevated," DiNapoli said Tuesday. "While a number of budget risks require close monitoring, the out-year budget gaps are relatively small and the city has increased its reserves to historic levels."

The projected 2016 surplus stems largely from unanticipated growth in tax revenues, debt service and agency savings, and a drawdown of reserves not needed in the current year.

DiNapoli's report, though, cites several areas of concern for the city. Economic growth in China has slowed, and the U.S. economy's growth slowed to 1.4% in the fourth quarter of 2015 and to 0.5% in the first quarter of 2016.

Moody's Investors Service rates the city's general obligation bonds Aa2. Fitch Ratings and Standard & Poor's rate them AA.

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