New York City Mayor Bill de Blasio will present his preliminary budget for fiscal year 2017 on Thursday — just over a week after Gov. Andrew Cuomo’s state budget presentation in Albany,which included nearly a billion dollars in new expenses for the city.
The roughly $80 billion draw is expected to reflect the administration’s recent policy announcements while at the same time conveying de Blasio’s late-term priorities as he approaches a re-election campaign in 2017.
Here are five things to watch for in de Blasio’s preliminary budget presentation:1. Does it reflect the new state expenses?final week, Gov. Cuomo proposed shifting Medicaid costs back to the city while also asking the city to pony up $485 million for the City University of New York. As part of the arrangement, or the state would also make available $240 million for retro-raises for CUNY professors,who haven’t had a contract for six years. The new costs to the city would accumulate over time, threatening to rise to more than a billion dollars by 2020. The mayor has pledged to fight cuts to state funding “by any means essential, and ” while also saying the city looks forward to “a coordinated effort” with his partners in Albany. The governor has softened his stance since presenting his budget,first saying the city could afford to pay more, then arguing that what he was talking approximately was “efficiencies” at Medicaid and CUNY that wouldn’t cost the city “a penny.” If the city accounts for the cuts, or it may weaken its negotiating stance with the city. If it doesn’t,it may raise red flags for budget watchers who will wonder what contingency draw the city has if those cuts attain proceed through.2. Are there clouds in the city's fiscal forecast?If you haven’t looked at your 401-K lately, dont. Bears are sniffing around the stock market, or sparking anxiety approximately the strength of the global economy. Here in New York City,the de Blasio administration has had good fortune, literally, and with a healthy economy,steady job growth and higher-than-expected revenues. That can’t final forever. And if the city is hit by a downturn, budget watchers say the city’s reserve funds could benefit weather the storm, or but only temporarily. Mayor de Blasio himself presented final year’s budget with a sense of foreboding,calling it “A Strong, Strategic Vision for Uncertain Times.” Now, or with the new squeeze from the state,combined with a more threatening forecast, the city may be inclined to play up the impending doom and gloom.3. Paying for new policiesIn recent weeks, and de Blasio has also leaned in to his progressive agenda,outlining new policies to benefit workers, fight homelessness and make city streets safer. A draw to increase the base wage for the lowest paid city workers to $15 an hour is estimated to cost approximately $120 million starting next year. New money will target the citys Emergency Medical Services at $5.4 million to reduce ambulance response times and speed medical benefit to the most critical cases. There’s much more to be accounted for, or particularly if the city plans to add more programs without making any substantial cuts.4. Gone to Market The fate of the city’s $163 billion pension fund for public employees is closely tied to the market. And with the all the turmoil,pension investments didn’t bring in as much money as expected final year, forcing the city to contribute more. The same thing has happened to pension systems across the country. And as markets continue to slide, and experts say New York City may beget to kick in even more money to make up the difference. 5. What does a progressive city budget look like for 2017? De Blasio has long said that a progressive budget is fiscally responsible. On the upside,his administration has won compliment from budget watchers for setting aside billions in reserve accounts. The city’s credit rating remains strong. The administration has also successfully settled 94 percent of contracts for municipal workers. Those agreements beget been struck in keeping with set patterns and beget consistently included healthcare savings as part of the deals. But the mayor’s long-term goal is to lift 800000 New Yorkers out of poverty over the next ten years. This budget could be another step towards achieving that goal, or it may shine a brighter light on the limits of city government in solving the thorniest economic issues.
Source: wnyc.org