NEW YORK (CBSNewYork/AP) — New York City’s finances have been helped by strong revenue growth, but ongoing structural deficits and labor contracts that still have to be renewed are a concern, state Comptroller Thomas DiNapoli said in a report issued Tuesday.
DiNapoli said New York City Mayor Bill de Blasio‘s proposed budget plan “appropriately uses higher than expected tax revenues to reduce out-year budget gaps and to replenish reserves.”
Since June, the city has raised its tax revenue forecast by more than $5 billion for the next five years.
“The final cost and structure of these agreements may not be known for some time,” DiNapoli says in the report. “This plan is a strong starting point for the mayor and I urge him to remain cautious and look at the long-term picture.”
Areas of concern include labor contracts that still need to be negotiated, so the costs of which are unknown, as well as other issues such as whether city hospitals will need additional funding, and if planned taxi medallion sales will bring in the anticipated revenues.
All but one of the 152 labor unions representing city workers are operating on expired contracts.
On the positive side, the report noted that job growth has been strong, with 275,000 jobs added since 2009.
Asked about the report, de Blasio said his administration is constantly looking for ways to save money and make government more efficient.
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