City Council dupes Mayor Adams with excessive spending

Mayor Adams is celebrating reaching a final budget deal with the City Council on time, but the victory came at the cost of surrendering and agreeing to a bloated spending plan of $112.4 billion, which actually amounts to $116.1 billion when factoring in prepayments and “interfund transfers.”

He gave in on restoring almost every cut he had previously made, resulting in over $1 billion in additional spending beyond his Executive Budget, shifting from a fiscal conservative in January to a more liberal approach by June.

City-funded spending increased by 7.5% ($6.1 billion) compared to the previous year as the mayor decided to replace $5 billion in expiring federal COVID aid with local-taxpayer money.

Formerly, the federal aid was used by the previous mayor to boost city spending, which now becomes a financial obligation for taxpayers in the long term.

Despite the economic uncertainties, the Rainy Day fund remains at $2 billion, insufficient for future recessions.

According to Citizens Budget Commission chief Andrew Rein, failing to save during strong revenue periods will result in severe cuts during economic downturns.

Although Mayor Adams boasts of $8 billion in reserves, this includes funds from the retiree health-care trust, which is considered a financial trickery that has become routine over the years.

Furthermore, rising retiree-health-care costs are expected after the teachers union withdrew its support for savings by enrolling retirees in Medicare Advantage plans, which were meant to cover raises for teachers.

Despite a decrease in public-school enrollment due to illegal migrant influx, education spending has risen by $700 million, following a 17% increase in the previous three years.

While Mayor Adams emphasizes public safety as essential for the city’s prosperity, the NYPD’s headcount remains at a modern low of 34,000, down from 40,000 in the recent past. The City Council’s new paperwork requirements are affecting cops’ productivity, leading to an increase in early retirements.

City-funded spending has increased by 18.3% compared to the final budget inherited from Mayor Bill de Blasio, growing faster than inflation despite economic uncertainties.

Mayor’s budget office may use accounting tricks to mask recurring deficits on paper, but these illusions will not withstand the test of reality.

When faced with the consequences, tough times lie ahead.