Your guide to NYC's public proceedings.
AGENCY TESTIMONY
Economic outlook and budget concerns
3:31:27
·
126 sec
Comptroller Lander emphasizes the urgent need for strong fiscal management in New York City, citing various economic challenges and uncertainties.
- The city faces potential budget deficits and larger out-year budget gaps than projected
- Lander criticizes the Adams administration's approach, calling the budget 'blithely released' and 'mocking'
- He highlights the practice of under-budgeting, estimating it at $4.05 billion in FY '26 and $3.6 billion on average in out years
Brad Lander
3:31:27
When I came before you in March, I noted that our city's need for strong fiscal management had never been more urgent.
3:31:34
The threats posed by the Trump administration to New York City, to our people, our economy, our finances have unfortunately only intensified since then.
3:31:43
With the dizzying back and forth and actual implementation and court rulings of the tariffs, the Trump administration has introduced chaos into the global economy and created extraordinary levels of uncertainty.
3:31:55
It has meanwhile attempted to terminate, pause, or rescind hundreds of millions of dollars in federal grants recently already awarded to the city through its flurry of executive orders and policy changes, and this is even before considering the potential devastation that the Congressional Budget Reconciliation Bill could have on federal aid to the city government, to the state, and directly to New Yorkers.
3:32:21
It was in this environment already back in March that the Adams administration blithely released what it called the best budget ever, almost like mocking all of us, with little recognition of the grave reality the city faces from the economy and actions in Washington.
3:32:37
The executive budget and the May financial plan, while reflecting record high revenues, adds nothing to the city's budget reserves or to its rainy day fund.
3:32:46
When adjusted for prepayments, spending budgeted for FY '25 is $1,400,000,000 more than projected revenues, continuing a pattern of running a deficit for the third year in a row.
3:32:58
The May plan also reflects larger out year budget gaps than those projected by the mayor in January with no real savings or efficiency program to address them, and this is before accounting for the mayor's practice of under budgeting, which we believe totals a whopping 4,050,000,000.00 in FY '26 and 3,600,000,000.0 on average in the out years, when including the costs we know we're going to spend on rental assistance, overtime, shelter, Carter cases, MTA subsidies, and more.
3:33:27
Some of those could be reduced with good management.
3:33:31
Others of them we're going to pay almost for certain.