New York City should continue to build up its budgetary cushion to protect against further economic downturns or natural disasters, city Comptroller Scott Stringer told the City Council's finance committee.
"This will protect us when hard times hit,"
The 51-member council is debating Mayor Bill de Blasio's proposed $78.3 billion budget for fiscal 2016, which Stringer said was actually $81.5 billion given that the city is prepaying some of next year's expenses with this year's resources.
Deadline for budget passage is June 30.
Since de Blasio introduced the preliminary budget in February, the city has established a capital stabilization reserve of $500 million, planned a $280 million deposit in the retiree health benefit trust, and an increase of $250 million to the general reserve in each of fiscal years 2016 through 2019, for a total of $1.78 billion in additional reserves.
Nonetheless, said Stringer, "the cushion against future downturns is still short compared to the reserves that were available entering the great recession."
Stringer praised city officials for lowering the assumed debt service interest rates. The budget now reflects $159 million in related interest-rate savings. According to Stringer, 12% of the savings program comes from realizing additional revenues.
Moody's Investors Service rates the city's general obligation bonds Aa2. Fitch Ratings and Standard & Poor's rate them AA.
