Thanks to David Irons for sending our way this Independent Budget Office analysis from May. Mayor Bill de Blasio is planning to leave office by budgeting two years of zero percent salary increases for the next round of collective bargaining for NYC municipal employees, including teachers, for 2022-2024. The mayor is budgeting a "very generous 1%" for year three. Here it is right from the IBO report:
The current plan does not include any funding for potential salary increases for the city’s workforce in the first or second years of the next round of collective bargaining, only including a one percent increase for the third year.
All of that federal and state aid coming in and nothing for the city's municipal workforce. That is how de Blasio plans to leave office. Don't let UFT President Michael Mulgrew fool you by saying the cupboard is bare when the UFT Contract expires in September of 2022. There is plenty of money available as we pointed out the other day in analyzing the final city budget for the 2022 fiscal year.
For those wondering, the IBO did the math on what salary and benefit increases for city employees would cost the city:
IBO estimates that the cost of a 1.0 percent wage increase and associated fringe costs in each year of the next contract period would require an additional $2.4 billion to be added to the financial plan, $884 million of which would be needed in 2022 and 2023. Any settlement that exceeds increases of 1.0 percent would cost the city that much more. In past years, most annual salary increases have exceeded 1.0 percent, but given the current economic uncertainty, the city may take a hard line on negotiating larger increases. Conversely, many unions will likely push for bigger increases for their membership, particularly in light of the sacrifices many of their members made during the pandemic.
I say the city better be thinking of setting aside around $8.8 billion for its workers just to keep up with expected inflation.