Mayor Eric Adams on Wednesday proposed a revised $106.7 billion spending plan that scales back some of the cuts he had initially sought from public libraries and city agencies like fire, sanitation, parks and homeless services.
But how New Yorkers will feel the impact of pre-existing cuts as well as spending reductions by other agencies will likely be scrutinized as the City Council and advocates dissect the plan.
During his address at City Hall, Adams touted the budget — which is $4 billion higher than his preliminary plan in January — as one that prioritizes working New Yorkers. He said 60% of the budget goes to education, health care and social services.
Nevertheless, Adams acknowledged future “storm clouds gathering” on the horizon.
Adams’ executive budget proposal — which will be reviewed by the Council next month before its passage at the end of June — reflects the prospect of an economic slowdown that will affect tax revenues as well as billions of dollars in costs associated with the care of tens of thousands of migrants arriving from the southern border.
City officials estimate the migrant crisis will cost taxpayers over $4 billion by 2025. The city currently anticipates $1.6 billion of that sum will come from state and federal aid.
Billions of dollars in raises and other benefits to members of the city’s unions, who have seen their agreements expire, account for a significant portion of the new spending.
District Council 37, the city’s largest municipal labor union, and the Police Benevolent Association, the city’s largest police union, both received generous multiyear deals of $4 billion and $5.5 billion respectively.
The mayor’s office said the city expects to spend an additional $16 billion to settle the remaining outstanding contracts through 2027.
Budget watchdogs say the mayor needed to make more strategic cuts given the looming deficits facing the city in future years.
The city projects a budget deficit of $4 billion in fiscal year 2025,…
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