Bill de Blasio’s spending could leave city in budget crunch for years: IBO

The city’s Independent Budget Office initiatives that greater than $4 billion of the city’s federal stimulus cash goes to packages designed to proceed nicely after the help dries up — including extra gas to criticism of Mayor Bill de Blasio’s latest ‘drunken sailor’ spending spree.

That accounts for roughly one in 4 {dollars} of the $15.8 billion in federal funds the Big Apple has been allotted as a part of the coronavirus rescue bundle handed by Congress and signed by President Biden.

The spending spree comes because the IBO initiatives the coronavirus pandemic has taken a $17 billion chew out of the city’s tax revenues between 2021 by means of 2024 — a large decline that could imperil the Big Apple’s future funds, the company warned in its report.

“The loss of such a large amount of revenue — over 6 percent of estimated tax revenue through 2024 — could greatly hinder the ability of the city to maintain its current level of services,” the watchdog warned in its report.

The $4.2 billion in federal stimulus funds flagged by the IBO is getting used to undo a raft of budget cuts pressured by tax shortfalls because of the pandemic — together with changing $1.3 billion in wanted labor financial savings, permitting officers to divert almost $600 million in tax cash that might sometimes fund the Sanitation and Correction departments, offering $149 million to rent new city workers and restoring $28 million in cuts to trash pickups.

The Independent Budget Office projects that de Blasio's spending plans for 2022 will cost $98.8 billion.
The Independent Budget Office initiatives that de Blasio’s spending plans for 2022 will price $98.8B.
Roy Rochlin/Getty Images

All advised, the budget watchdog initiatives that de Blasio’s spending plans for 2022 will price $98.8 billion — barely greater than City Hall’s record projection of $98.6 billion.

The infusion of federal assist means the city budget could see a surplus of as a lot as $1.3 billion in 2022, nonetheless deficits of not less than $3.5 billion are forecast for 2023, 2024 and 2025.

Good authorities teams and budget watchdogs have slammed de Blasio’s budget proposal for not setting apart extra federal funds for future years, leaving his successor with these yawning budget gaps.

“He’s spending like a drunken sailor and leaving it to the next mayor to be sober,” stated former president of the Citizens Budget Commission, Carol Kellermann, told The Post last week.

De Blasio’s wild spending apart, the IBO predicts the arrival of the coronavirus vaccines — coupled with the continued enjoyable of pandemic-related restrictions — will assist velocity the financial restoration throughout the 5 boroughs.

The budget watchdog now expects the city’s financial output in gross {dollars} to exceed its pre-pandemic ranges later this 12 months.

Carol Kellermann said Mayor Bill de Blasio is spending money "like a drunken sailor."
Carol Kellermann stated Mayor Bill de Blasio is spending cash “like a drunken sailor.”
Alexi Rosenfeld/Getty Images

And, it now initiatives that employment in the Big Apple will return to 2019 ranges by 2024 — a 12 months earlier than it beforehand projected.

The IBO chalked up the large lag between the restoration in financial output and employment figures to the city’s heavy reliance on tourism — pointing to the likelihood that digital conferences could result in everlasting cutbacks in enterprise journey and the continued unfold of the coronavirus abroad would dampen worldwide tourism.

“We do not expect that pre-pandemic levels of employment in leisure and hospitality will be attained [by 2025],” the IBO warns.

City Hall lately introduced a new $30 million tourism ad campaign in a bid to attempt to head off everlasting declines in the sector, funded by stimulus {dollars}.

“The city just passed through its most difficult financial stress test in generations and came out on top thanks to our aggressive vaccination campaign, strong fiscal management, and the robust federal stimulus,” stated de Blasio spokeswoman Laura Feyer.

“The entire point of the stimulus is to push economic and revenue growth which will drive New York City’s recovery for years to come.”

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