The City cannot cry poverty when it comes to contract negotiations with its employees. This is from the Independent Budget Office:
IBO projects that the city will end fiscal year 2023 with a $4.9 billion surplus, $2.8 billion more than the surplus projected by the Office of Management and Budget (OMB) in the Preliminary Budget. This higher surplus is the result of IBO’s forecast of $1.8 billion more in anticipated tax revenues in 2023 than OMB, coupled with IBO’s estimate that city-funded spending will total about $1.0 billion less than budgeted in the Preliminary Budget. IBO projects that the city will underspend on personal services costs, offset somewhat by increased estimates of city-funded costs in other areas of the budget, including for the Department of Education, overtime at the uniform agencies, and for costs related to asylum seekers.
IBO assumes the city will prepay some of next year’s expenses with this year’s surplus, resulting in a surplus of $2.6 billion in fiscal year 2024.
Pretty good financial picture on the horizon. The City cannot cry poverty.
For those wondering what a salary increase for all City workers would cost, this is also in the IBO report:
As of the Preliminary Budget, IBO estimates, for example that just a 1 percent raise would cost approximately $362 million in fiscal year 2024, if all new labor contracts were to commence on the first day of fiscal year 2024.