Potential Consequences of Mayor Adams’ New Budget Could Pose Major Risks in the Future

Feeling lucky lately? Well, New Yorkers aren’t, as the city’s perception among voters has hit rock bottom based on recent polls. Despite Mayor Adams boasting about his “strong fiscal management,” the $114.1 billion budget he introduced last week actually increases next summer’s deficit, just in time for his re-election campaign.

Last Wednesday, Mayor Adams presented his second draft of the budget for the upcoming fiscal year starting July 1. He will spend the next couple of months in negotiations with the City Council to iron out the details.

True, the total spending is projected to decrease by 1.7%, reaching $114.1 billion for the next year. However, with inflation hovering around 3%, this cut is significant.

Despite this, the Adams administration has yet to find efficiencies in the government, meaning New Yorkers will experience real declines in day-to-day services.

For instance, Mayor Adams has not restored funding for libraries to open on Sundays and extend Saturday hours. He mentions that it’s a possibility, pending negotiations with the council.

The major point to note in this budget is the replacement of one-time COVID-era federal grants with city-funded spending, leading to a 4.5% increase in spending from city tax dollars.

Since taking office, city-funded spending has risen by nearly 17%, amounting to $12.6 billion, in line with national inflation rates.

Two key areas requiring attention indicate a shift in Gotham’s responsibilities.

One area is education, where the city is mostly replacing the loss of federal funding with local dollars, resulting in an extra $2.1 billion in city spending for the next year.

The other area of concern is migrant spending. City Hall boasts about “savings” on asylum-seeker costs, but these are based on initial projections and not actual savings.

New York City is projected to spend $3.4 billion on asylum seekers using city tax dollars next fiscal year, a notable increase from the previous year.

While Mayor Adams has reversed the decision to cancel two police-academy classes, the police force remains unchanged at 35,000 officers, with crime rates staying high.

Despite anticipated tax revenue increases, Mayor Adams projects a deficit of $5.5 billion beginning next summer, up from an earlier projection of $5.2 billion.

In the face of potential challenges like a recession or spikes in crime, the mayor has limited margin for errors and must navigate through these obstacles carefully.

Due to past financial decisions and the migrant crisis, Mayor Adams finds himself without any major first-term projects to his name, making his belief in good luck even more puzzling.

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