Why Mayor Adams’ Latest NYC Budget is More Troubled Than It Looks
Facing a challenging reelection campaign, Mayor Adams is clearly hoping that the budget he unveiled on Thursday will earn him recognition for “investing” in initiatives that resonate with New Yorkers while demonstrating sound fiscal management.
This approach has resulted in another plan that perpetuates the city’s longstanding habit of overspending while minimizing the true costs.
For instance, the budget features a staggering $114.5 billion figure. At first glance, New Yorkers might think, Great! The mayor has only increased the bottom line by $2 billion, or 1.8%, compared to last year’s budget.
However, the $114.5 billion is actually $2 billion less than what he claims City Hall will have utilized by the end of this fiscal year on June 30 — but those numbers aren’t accurate.
According to Citizens Budget Commission President Andrew Rein, “Next year’s spending plan does not reflect reality”: It’s “short nearly $4 billion needed to fund existing services.”
Additionally, this year’s revised budget is already $700 million in the red, primarily due to overtime expenses.
“After adjusting for underbudgeting and pre-payments, city-funded expenditures will increase by 6.7% in fiscal year 2025 and 5% in fiscal year 2026,” notes Rein. That’s significantly faster than the rate of inflation.
Moreover, this doesn’t account for the additional funding demands expected from City Council members, potential reductions from the state and federal government, or a slower-than-anticipated economy.
Similarly, while Adams’ anticipated future deficits — $4.2 billion in 2027, $5.4 billion in 2028, and $5.1 billion in 2029 — sound alarming, the actual shortfalls are likely at least 40% worse, potentially exceeding $25 billion.
This means the city will have to either reduce services, reallocate funds from other areas, or hope for an unexpected influx of revenue from a booming economy, state allocations, or federal assistance.
While Adams has managed to identify some minor savings across a few agencies, the city has persistently taxed and spent excessively for far too long — and the budgeting process, to put it frankly, is chaotic.
As Rein puts it concisely, “Hard choices and better management are essential to enhance New Yorkers’ quality of life.”
Make no mistake: The council, which must approve the plan, is equally culpable.
If City Hall cannot even present an accurate account of taxpayer expenditures, let alone maintain a commitment to keeping costs minimal, what grounds do New Yorkers have to expect effective governance?
