The potential cost of labor negotiations casts a shadow of uncertainty on New York City finances, said
"While strong economic growth has boosted city revenues, Mayor [Bill] de Blasio continues to grapple with ongoing structural deficits and labor contracts that have remained unsettled for far too long," DiNapoli said in his review of the city's four-year financial plan. "The final cost and structure of these agreements may not be known for some time. This plan is a strong starting point for the mayor and I urge him to remain cautious and look at the long-term picture."
In addition to collective bargaining, other risks include the anticipated receipt of $1.2 billion from the planned sale of taxi medallions during fiscal years 2015 through 2017 and whether Health and Hospitals Corp. will require additional financial assistance from the city. DiNapoli said it is also unclear if federal aid for recovery from Hurricane Sandy will fall short of expectations.
Additionally, while de Blasio and Gov. Andrew Cuomo agree on expanding universal full-day prekindergarten and after-school programs, they have yet to reach a funding agreement. The mayor is scheduled to presents his executive budget in May.
Moody's Investors Service rates the city's general obligation bonds Aa2, while Fitch Ratings and Standard & Poor's rate them AA.
As chief fiscal officer for the state and a member of city's Financial Control Board, the state comptroller regularly examines New York City's budget and rolling four-year financial plan.
