New York City anticipates higher projected tax revenues but widening out-year budget gaps, city Comptroller Scott Stringer told the City Council Tuesday.
Discussing his analysis of Mayor Bill de Blasio's proposed $82.2 billion executive budget for fiscal 2017 and financial plan for 2016 to 2020, Stringer cited a gap ballooning to $3.8 billion in 2019 and signs of a potential economic slowdown. Speaking before the council's finance committee, he urged building up the city's budget reserves and finding savings.
Expected gaps of $3.3 billion, $3.8 billion and $3.1 billion in fiscal 2020 exceed the administration's forecast and are based largely to increased city contributions to the city's Health + Hospitals unit, higher overtime costs, higher shelter operation expenses and lower Medicaid reimbursements for the Department of Education.
"Slow but steady economic growth has produced additional funds for the city budget, but signs of a potential slowdown are on the horizon," Stringer said. "Larger projected out-year budget gaps emphasize the need for the city to manage its resources efficiently so that vital services can be protected in the event of an economic downturn."
The 51-member council must act on the budget by June 30.
Moody's Investors Service rates the city's general obligation bonds Aa2. Fitch Ratings and Standard & Poor's rate them AA.
