Eric Adams proposes New York’s record $102.7 billion budget – no money for migrants

Mayor Eric Adams unveiled Thursday a record $102.7 billion budget proposal that would increase planned city spending by almost 1.6% — not including more than $1 billion in estimated spending on the ongoing migration crisis.

The mayor’s office also warned of a looming “perfect storm of slowing revenues and rising spending” that will see gaping budget deficits hit $6.5 billion in coming years.

“As our city continues to recover, our administration continues to invest in our core priorities, including public safety, affordable housing, and clean streets, while maintaining sound financial management,” Adams said in a statement released ahead of a scheduled 2:00 p.m. address. according to the spending plan.

“By asking agencies to self-fund new needs with pre-existing resources, the FY 2024 Provisional Budget continues our successful track record of using taxpayer dollars wisely while continuing to “get things done” for New Yorkers.”

The mayor’s fiscal year 2024 budget includes a projected $1.7 windfall “driven by the continued momentum of record activity on Wall Street in 2021,” the mayor’s office said in a statement.

The budget does not take into account the migrant crisis, which could cost the city more than $1 billion.
The budget does not take into account the migrant crisis, which could cost the city more than $1 billion.
Gregory P. Mango

But Big Apple analysts expect the “continued slowdown in the economy” – which many experts say could lead to a nationwide recession this year – “will lead to slower growth in tax revenues compared to the fiscal plan,” the statement said. .

“At the same time, the city is facing budgetary pressures to meet the cost of meeting its legal obligation to house some 40,000 asylum seekers, currently valued at a minimum of $1 billion in FY23 alone, the need to fund billions of dollars for upcoming work. financial plan contract settlements, rising annual health care costs, and declining federal stimulus funds ending in fiscal year 2025,” the mayor’s office said.

As a result, officials are projecting a deficit of $3.2 billion in FY 2025, $5 billion in FY26, and $6.5 billion in FY27.

The city’s fiscal year begins on July 1 and ends on June 30 of the following year, giving it its name.

The mayor’s plan represents a $1.6 billion increase in spending over the $101.1 billion fiscal year 2023 budget passed last year.

Adams' budget will increase city spending by 1.6%.
Adams’ budget will increase city spending by 1.6%.
Daniel William McKnight

But in November, budget officials estimated that actual FY 2023 spending would be $104 billion, despite the widespread cuts Adams ordered in September.

On Thursday, the Adams administration touted more than $3 billion in savings over fiscal 2023 and 24, largely thanks to the mayor’s directive to cut more than 4,300 job vacancies.

“Approximately 23,000 job openings remain open across the city, leaving ample room for agencies to recruit for critical positions,” the mayor’s office added.

Adams’ balanced budget plan also leaves $8.3 billion in reserve, including $4.5 billion earmarked for increased retiree health care costs and $1.6 billion for general spending.

But an increase in the amount of money allocated for housing and caring for the flow of migrants who began to flood the city in the spring as a result of President Biden’s border crisis is not predicted.

Other new expenses include:

  • $259 million to help meet “carbon reduction targets” set in 2020, when the city mandated all new buildings be fully electrified by 2027;
  • $228 million for “high priority street construction”, including projects related to the Vision Zero safety plan;
  • $153 million for a public-private redevelopment plan for Willets Point in Queens;
  • $77 million to double the installation of new traffic lights to 200 per year and related improvements;
  • $62.3 million to renovate the Soldiers and Sailors Monument in Riverside Park on Manhattan’s Upper West Side.

The mayor, who declared a state of emergency in October over the migrant crisis, has estimated the cost at $1 billion a year and is seeking the money from the White House, which refused repeated requests by Adams last week.

To date, New York City has received less than $8 million from the feds, although White House press secretary Karine Jean-Pierre acknowledged that the influence of migrants on the Big Apple is comparable to what is happening in “border cities.”

Migrant families arrive at the Stewart Hotel in Manhattan on January 6, 2023.
Migrant families arrive at the Stewart Hotel in Manhattan on January 6, 2023.
J. Messerschmidt/NY Post

As of Wednesday, about 26,700 of the 39,500 migrants who arrived at the Big Apple were accommodated in 75 hotels and four Humanitarian Response and Assistance Centers, according to the city’s latest figures.

The so-called HERRCs include the Row NYC Hotel near Times Square, where a whistle-blower officer reported on Tuesday that almost a ton of taxpayer-funded food is thrown away every day.

Hizzoner’s new spending includes $20 million to address the city’s housing crisis, including giving away up to $100,000 to every low-income first-time homebuyer and cracking down on “bad” landlords who harass their tenants.

Another $2.8 million is earmarked for the mayor’s “Building Things” plan to create 500,000 affordable housing units over 10 years, with the money intended to accelerate development by cutting red tape at various city agencies.

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