From the state comptroller’s review of New York City’s 2010 Financial Plan, a chart of actual spending growth from 2001 through 2008, and projected growth through 2013.

osc-city-spending1-3658561

The substantial out-year spending growth rates include some favorable assumptions in the city’s June plan: for example, that the Legislature will approve less expensive pension benefits for future city workers, saving $200 million in 2013, and that the city will be achieve health insurance savings of nearly $1.3 billion over the next three years through increases in employee co-pays.  So far, Mayor Bloomberg and municipal unions have reached a deal that will save less than half as much as the plan envisions.

Another key chart depicts the city’s operating results for the past decade, including big deficits in 2009 and 2010, which have been covered papered over by the use of surplus funds accumulated in previous years.

city-deficits-9995655

The city overcame the structural operating deficits of 2001-03 thanks to the record surge in revenues generated by the Wall Street boom of 2004-08.   Absent another boom, the much larger deficits of 2009-2010 will prove much more difficult to erase.

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

Hochul’s ‘Straight Talk’ on Medicaid Isn’t Straight Enough

Arguably the biggest Medicaid news in Governor Hochul's budget presentation was about the current fiscal year, not the next one: The state-run health plan is running substantially over budget. Read More

New York’s Medicaid Spending Is Running Billions Over Budget

New York's Medicaid program ran billions of dollars over budget during the first half of the fiscal year, adding to signs of a brewing fiscal crisis in Albany. According to the fro Read More

Hospital Lobby’s TV Campaign Spreads Misinformation About Medicaid

As New York's health-care industry agitates for more money from the state budget, two of its most influential lobbying groups are airing TV ads that make alarmist and inaccurate claims about Medicaid. Read More

Hochul’s ‘Pay and Resolve’ Push for Hospitals Triggers Déjà Vu

Two years ago last week, I wrote in the Daily News about how then-Governor Andrew Cuomo was pushing a costly change to insurance law on behalf of a hospital group that had supported his campaign through a fund-rai Read More

The Looming Collapse of a Long-Term Care Insurer Raises Questions for DFS

As the Hochul administration presses for the creation of a "guaranty fund" to bail out failed health insurers, the state is quietly moving to seize a small company that could be the fund's first target. Read More

New York’s pricey hospitals draw pushback from labor

A City Council hearing in Manhattan on Thursday promises a rare scene in New York politics: hospitals playing defense. The council is debating whether to establish a watchdog agency focused on the high price of hospital care in New York, with a goal of helping the city and other employers contain the rapidly rising cost of health benefits for workers. Read More

Hochul puts Medicaid spending on a steeper slope

Governor Hochul is releasing the brakes on Medicaid, allowing state spending on the safety-net health plan to increase more than twice as fast as it typically did during the Cuomo administration. Read More

Hochul’s agenda mostly sidesteps health care

Governor Hochul gave health care surprisingly little attention in her State of the State speech on Tuesday – a sign that taking on dysfunction in one-sixth of the state's economy ranks low on her list of priorities. Read More