Debt-service savings helped New York City close its $5.5 billion budget gap for fiscal 2022, city Comptroller Scott Stringer said in his
Stringer also said improved personal income and business tax revenues helped close the gap.
He called for using federal funds to extend the social safety net to undocumented workers, supporting students and schools, relieving debt for taxi drivers, immediate aid for restaurants, support for performance industry businesses and tax credits for retail in high-vacancy corridors.
“The challenges of the pandemic and the economic crisis aren’t yet behind us,” Stringer said. “From a slowed economic recovery to a rocky vaccine rollout, our city still has a difficult road ahead.”
De Blasio last month presented his $92.3 billion plan, which the 51-member City Council must approve by June 30.
The preliminary budget closes a $5.5 billion gap through $1 billion in savings, $1.15 billion drawn down from next year’s contingency reserves — leaving just $100 million dollars in reserves for next year — $326 million of debt refinancing, lower pension contributions, and an additional $2.7 billion surplus from the current year due largely to income and business tax revenues performing better than expected.
Budget gaps, Stringer said, remain substantial — $4.31 billion, $4.19 billion and $4.28 billion from fiscal 2023 to 2025, respectively.
The state budget has pushed $1.3 billion in costs to the city over the last five years including cost shifts, sales tax intercepts and unfunded mandates.
This year’s Albany plan would cut back $800 million of state education funds, substituting federal funds from December’s stimulus bill along with another $220 million of other costs. The state’s long-term budget outlook, said Stringer, could leave the city with even larger shortfalls in the future.
“The future is fraught with risks from the economy and the fiscally stressed state budget that may increase budget gaps tremendously,” said Andrew Rein, president of the watchdog Citizens Budget Commission.
Stringer is considered a leading candidate to succeed de Blasio, who cannot seek re-election this year because of term limits.
