This is from the Mayor's Fact Sheet on the budget:
The City does recognize the need to be cautious in the face of uncertainty. As a result, this administration has put a record amount of funding in reserves. Specifically:
- The General Reserve is at $1 billion in FY18 and every year of the financial plan, compared to the traditional $300 million.
- The Retiree Health Benefits Trust Fund is at $4 billion, $3.3 billion the result of this Administration.
- The Capital Stabilization Reserve that was established under this Administration in FY16 has been modified to include $250 million in every year of the four-year plan, compared to the one-time $500 million previously established.
The Administration is also managing out-year gaps and continuing to find savings across City government. As of the Preliminary Budget, agency and debt savings will reduce expenses by $1.1 billion in FY17-18. This is addition to the $1 billion found in the FY17 November Plan and with more to come in the Executive Budget this spring.
It looks like the city is flush with cash however when President Donald Trump announced yesterday that the federal government could cut funding to sanctuary cities, the Mayor came out fighting. De Blasio now has an issue to claim the city might be broke and he also has his de facto adversary for reelection: Trump.
Here is part of de Blasio's reaction to Trump's Executive Order on sanctuary cities from Politico New York.
"President Trump issued an executive order today and it's purported purpose was to enhance public safety, but here in New York City and in cities across this nation this executive order could in fact undermine public safety," de Blasio said during a quickly arranged press conference at City Hall, as the New York Police Department Commissioner James O'Neill and a dozen other senior city officials stood at his side.
De Blasio argued that the "potential funding cuts suggested in the executive order would first and foremost fall on the NYPD," and that "the executive order on its face contradicts its stated purpose," which is to help keep Americans safe.
Look for the Mayor to blame Washington for whatever problems the city may have. It is a smart reelection strategy.
When municipal labor contracts come due, expect the city to scream that it is broke.