Seasonal borrowing for fiscal 2015 will be unnecessary, thereby saving New York City $75 million in debt-service costs, Comptroller Scott Stringer said.
"We think that the $75 million is off the table. We have money in the bank and a good cash flow," Stringer said June 6 before the council's finance committee.
Debt-service projections under the proposed four-year financial plan include $2.4 billion of seasonal borrowing in each of fiscal years 2015 through 2018.
The 51-member City Council is debating Mayor Bill de Blasio's revised $73.4 billion spending plan for fiscal 2015. It must pass a budget by June 30.
Stringer, while noting a jobs gain citywide, worried that 71% of the jobs added in 2013 were in low-wage industries such as retail and fast food.
"This is a trend we've got to reverse," said Stringer, echoing comments at a press briefing earlier in the week.
He pushed for further high-tech growth.
"If we don't think high-tech, that iPad will be nothing more than a paperweight," he said. "We can't rely on the fast-food industry to create an economy for us."
Later in the day, Ronnie Lowenstein, director of the Independent Budget Office watchdog organization, questioned whether the local economy can continue to add jobs without Wall Street taking the lead.
Lowenstein said "ample reasons for caution" loom on the budget side. For example, she said, some unions may oppose proposed labor settlements. "In particular, the police and fire unions have vociferously objected to the pattern ratified by the teachers' union."
United Federation of Teachers members on June 3 approved a nine-year contract with the city that includes back pay to 2009, when the teachers' last contract expired. Teachers will get an 18% raise stretched out through 2018.
It marked the first labor deal for de Blasio, who must strike an agreement with 152 other municipal unions.
According to Lowenstein, continued struggles of the New York City Housing Authority and the Health and Hospitals Corp. could further pressure the city to provide additional aid.
IBO projects that the city will end the current fiscal year with a $1.8 billion surplus, exceeding de Blasio administration estimates by $131 million. IBO projects an $830 million for fiscal 2015, followed by a $1.6 billion shortfall, about $930 million less than de Blasio's estimate.
