The Citizens Budget Commission has offered its take on New York City’s budget for fiscal year 2012, which started last Friday.

According to Maria Doulis, the budget was

a missed opportunity … to address the City’s fiscal problems in a lasting way – one that would … greatly reduce the need to propose other cuts in the future.

New York City’s finances suffer from a structural problem: spending growth is consistently projected to outpace revenue growth, resulting in repeated budget gaps.

While the 2012 budget is now balanced, the financial plan shows a gap of $4.8 billion in fiscal year 2013.

Driving the City’s spending growth are three items: health insurance, pension contributions and debt service. Spending on these items totaled $11 billion in 2005 and is expected to reach $23.1 billion in 2015.

While these expenses will double, the rest of the budget is projected to grow only 25 percent during this period. As a result, spending on the “big three” as a share of the budget will grow from 22 percent to 33 percent of total revenues between 2005 and 2015.

As these items claim a larger slice of the pie, less is available for other priorities. And that means service cuts will continue unless the City changes course.

The CBC offers solutions here. Cost-sharing with workers and retirees on healthcare costs, for example, could save $2 billion by 2015.

You may also like

Minimum wage for home care aides is likely to mean bigger raises for downstate than upstate

The newly enacted wage hike for home care aides is likely to increase workers' pay more than three times as much in the New York City area as in other parts of the state, according to a review of labor data. Read More

The flawed arguments behind ‘Fair Pay for Home Care’

As they contemplate a major increase in Medicaid spending on home care for the elderly and disabled, state legislators are relying on information that's outdated, incomplete or inaccurate – and neglecting to think through the predictable consequences. Read More

The debate over Medicaid home-care funding needs a reality check

The push in Albany to boost wages for home health aides is seemingly disconnected from the larger realities of the state’s long-term care system. As they , officials in the home care industry are warning that the state faces an of in-home caregivers Read More

Answers needed on Governor Hochul’s health-care budget

The health-care agenda laid out by Governor Hochul in her budget proposal this week leaves a lot of questions unanswered. Here are a few of them. Read More

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

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!