New York City’s Fiscal Future in Jeopardy Due to Officials’ Extravagant Spending

New York City is facing a migrant crisis and is also dealing with its biggest budget crisis since the 1970s.

According to two of the city’s most prominent fiscal watchdogs, the city’s budget crisis is not only due to the migrant crisis but also because of the failure to manage regular day-to-day spending.

A recent article by state comptroller Tom DiNapoli and Citizens Budget Commission chief Andrew Rein in Crain’s, the city’s business newspaper, warned that “Major looming budget gaps will have serious consequences . . . unless action is taken now.”

While the migrant crisis is expected to cost taxpayers approximately $4 billion annually for the next few years, it is just one of the many causes for the projected budget gaps.

It has been projected that New York could face a budget deficit of between $9.9 and $13.8 billion next year, which is a significant portion of the city’s $111.1 billion budget.

City-funded spending has significantly increased over the past decade, reaching $82.8 billion, even as inflation has risen by one-third.

Various factors have contributed to the budget crisis, including employee raises without any work-rule changes to increase productivity and the growth of fringe benefits for workers and retirees.

The city has also seen a 40% growth in education spending amid a decline in school enrollment.

In response to these crises, it is suggested that the city collaborate with its workforce to find efficiencies. This would have been made easier if Mayor Adams hadn’t awarded raises without asking for any givebacks from the workforce.

It is also suggested that Adams should prioritize protecting uniformed staffing in the police department and core public services like trash pickup over meeting other union goals.

It is recommended that the city needs to stop adding new spending and find ways to cut costs.

Nicole Gelinas is a contributing editor to the Manhattan Institute’s City Journal.