Mayor Bloomberg’s 2010 Executive Budget proposal is being portrayed as “grim” — but while the media and politicians focus on proposed spending reductions, a key measure of spending is actually rising at over twice the inflation rate.

The “City Funds” expense budget (excluding federal categorical aid, but including some temporary stimulus funds from Washington) will rise by 3.5 percent in fiscal 2010, which begins July 1, according to the Mayor’s Budget Message.  The Mayor’s Office of Management and Budget forecasts the Consumer Price Index will increase 1.6 percent in calendar year 2010.

The total city funds spending increase over the next four city fiscal years is projected by the mayor at $8.2 billion, or 19 percent, compared to total inflation of about 9 percent and personal income growth of 12.4 percent in calendar years 2009-2013. Seventy percent of the projected spending is attributed to what the mayor calls “uncontrollable” expenses, including pensions and fringe benefits — although these categories of employee compensation are shaped in part by generous collective bargaining deals the mayor agreed to as recently as last fall.

All this assumes that municipal unions agree to health insurance concessions and pension reforms sought by the mayor, which he says will save $400 million next year and up to $818 million by 2013.  Without union concessions, the annual city funds spending increase in 2010 will be more like 4.5 percent, rising to 6.4 percent in 2011.

The following chart compares the spending trend with OMB’s projected inflation and personal income growth for the fiscal plan period.  The numbers come from pages 8 and 22, respectively, of the Mayor’s Budget Message.

city-funds-chart1-2624519

About the Author

E.J. McMahon

Edmund J. McMahon is Empire Center's founder and a senior fellow.

Read more by E.J. McMahon

You may also like

Another Hochul To-Do: Timely Financial Reporting

The state will spend a record $212 billion in the current 2022 Fiscal Year, under the budget its elected leaders adopted in April. Read More

Health Research Inc. Turns Over its Payroll Records Despite Claiming To Be Exempt from FOIL

The full payroll records of more than 2,400 de facto state employees are available to the public for the first time after being released by Health Research Inc. Read More

Emergency Billions Pose Opportunity—and Risk—for NYS Schools

New York schools are to post publicly today plans for spending a huge pile of unexpected and unbudgeted cash. Read More

New York’s Medicaid Rolls Kept Pace with a Nationwide Surge During the Pandemic

New York's Medicaid and Child Health Plus programs added three-quarters of a million enrollees during the coronavirus pandemic, roughly matching the pace of a national surge in sign-ups. Read More

New York’s Medicaid and Public Health Crises Get Short Shrift in the New State Budget

In spite of an ongoing pandemic and spiraling Medicaid costs, New York's health-care system received surprisingly little attention in the new state budget. On issue after issue, law Read More

Schumer’s First Spending Bill as Majority Leader Tailors Money for New York Medicaid

The pandemic relief bill includes a boost in Medicaid funding that appears to be tailor-made for Senate Majority Leader Chuck Schumer. Read More

A Letter From Washington Shrinks New York’s Budget Gap by $2 Billion or More

In a letter to governors two days after President Biden's inauguration, the U.S. Department of Health and Human Services said that the pandemic-related federal public health emergency "will likely remain in place for the entirety of 2021." Read More

Governor Cuomo’s budget proposal leaves the Medicaid throttle open

Perhaps the most remarkable thing about Governor Cuomo's Medicaid budget is how little it changes the program's spending pattern. In spite of a once-in-century pandemic that rocked the state's health-care system and decimated state revenues, the govern Read More

Subscribe

Sign up to receive updates about Empire Center research, news and events in your email.

CONTACT INFORMATION

Empire Center for Public Policy
30 South Pearl St.
Suite 1210
Albany, NY 12207

Phone: 518-434-3100

General Inquiries: Info@EmpireCenter.org

Press Inquiries: Press@EmpireCenter.org

About

The Empire Center is an independent, non-partisan, non-profit think tank located in Albany, New York. Our mission is to make New York a better place to live and work by promoting public policy reforms grounded in free-market principles, personal responsibility, and the ideals of effective and accountable government.

Empire Center Logo Enjoying our work? Sign up for email alerts on our latest news and research.
Together, we can make New York a better place to live and work!