The NYC Independent Budget Office has released a report on city finances. Harris Lirtzman, who knows finance, has some analysis that he sent to ICE. It is copied below in full.
The IBO projected today a budget deficit of approximately $2.5 billion for the next fiscal year. That represents 3.3% on the City's $75 billion budget.
This is sofa-change for the City, which in the past had to close $5-6 billion deficits on much smaller overall budgets.
I raise all this because you'll probably remember the panicked cries that went out before and during the contract negotiations that paying the retroactive increase would break the bank. So the contract was extended to nine years and the retro stretched out beyond the term of the contract. Employees who quit before the new contract got nothing and retirees are being told to wait until an arbitrator can find $60 million somewhere else in the agreement to move around to pay them.
No disaster. No bankruptcy. No fiscal crisis. Some of us said loudly at the time that there would be no disaster or fiscal crisis.
Unfortunately, our leadership bought the narrative lock, stock and barrel and we got a lousy deal through 2018 with payments stretched out to 2020.