New York City might face a long-term budget nightmare because the coronavirus disaster cuts deeply into key sources of tax income, leaving City Hall scrambling to fill a $5.3 billion shortfall subsequent yr alone, Mayor de Blasio warned Thursday.

Hizzoner made the remarks as he rolled out a $92.3 billion spending proposal for metropolis authorities in 2022, which is $5 billion lower than the initially projected $97.4 spending stage.

However, de Blasio’s large budget is banking on Sen. Chuck Schumer the quickly to be Democratic majority chief coming by way of with $1 billion in new help for coronavirus bills.The mayor can also be relying on putting offers with metropolis unions for $1 billion in labor value concessions.

“This budget will start us on the road to recovery,” de Blasio informed reporters. “The years ahead are not easy. I want to caution everyone, the next few years, continued major budget challenges.”

Bill de Blasio talks about NYC’s budget on January 14.
NYC Mayor’s Office

Officials estimated that New York City may have misplaced $10.5 billion in anticipated tax income for the reason that COVID-19 emergency started in March 2020 by way of the 2022 budget, which ends subsequent June.

In response, de Blasio introduced one other $1.3 billion in company cuts, bringing the whole quantity trimmed since final June to $3.6 billion — albeit from what fiscal conservatives have criticized as runaway spending plans by the far-left mayor.

He additionally informed reporters that non-uniformed businesses must lose three positions by way of attrition for each new place they want to rent.

All informed 12,000 positions in metropolis authorities are anticipated to go unfilled, saving $282 million within the 2022 budget.

However, the municipal forms will fund 326,717 positions within the 2022 budget, which is 10 p.c bigger than the workforce of 297,349 he inherited when he succeeded then-Mayor Michael Bloomberg.

Even with the cuts, City Hall projected deficits of at the least $4 billion within the 2023, 2024 and 2025 budgets.

That’s partially as a result of town’s property tax revenues normally probably the most steady and predictable type of authorities funding are anticipated to plummet by $2.5 billion, in one of many greatest drops in latest reminiscence. That blow was partially offset this yr by offset by an sudden $1 billion in metropolis revenue tax revenues.

The eye-watering deficits so far as the attention may see outraged budget watchdogs, who once more opened hearth on de Blasio for not making further cuts to long-term spending as New York’s mounting pandemic-induced fiscal woes come into sharp reduction.

“Unfortunately, nearly one year into the fiscal crisis, the City still has not substantially embarked on the significant restructuring and spending restraint needed to stablize its long-run finances,” stated the top of the Citizens Budget Commission, Andrew Rein, after de Blasio’s presentation.

Hizzoner’s financial savings program, he added, is “too small and appears to disproportionately target program reductions instead of improving productivity or modifying employee benefits, both of which would minimize pain to New Yorkers at large.”

The CBC has been campaigning for City Hall to press labor unions for concessions on well being care protection together with requiring co-pays and to consolidate the handfuls of fringe profit packages throughout municipal authorities as one strategy to yield financial savings. It estimates that productiveness enhancements and the profit trims may generate $1 billion in financial savings yearly.

This is de Blaiso’s first full budget for the reason that coronavirus pandemic flipped town’s funds the other way up because it killed greater than 25,000 New Yorkers within the 5 boroughs alone and ravaged key sectors of Gotham’s financial system, together with actual property, theater, tourism and bars and eating places.

City Hall got here underneath fierce criticism for its first efforts to stability the books amid the preliminary months of the disaster, which included deeply unpopular cuts to entrance line providers like trash pickup and cleansing at metropolis parks.

That budget negotiated with the City Council in June additionally controversially included $836 million in cuts to the Police Department’s budget, which largely got here from reductions to time beyond regulation and transferring the college security division again to the Department of Education.

Those cuts took hearth from all sides.

Budget watchdogs derided them as ‘paper cuts’ that have been unlikely to be applied and the switch of college security brokers again the general public college system has but to occur.

Meanwhile, police unions blasted the cuts as an abandonment of officers as regulation enforcement got here underneath scorching criticism from Black Lives Matters activists following the brutal caught-on-tape demise of George Floyd by the hands of cops in Minneapolis. And BLM activists attacked the cuts as inadequate to pressure further reforms of the Police Department.

De Blasio additionally took criticism from budget specialists for claiming {that a} sequence of offers he struck with municipal unions to defer greater than $700 million in payroll prices for a yr counted as financial savings in his 2021 budget.

Reporters identified that after Hizzoner introduced he would wish to return to the unions once more for the 2022 spending plan.

“We were able to get what we needed for this year, so we could move forward,” de Blasio added. “I feel very good about the fact labor worked with us so productively to get things done, so I’m confident that we can work together again.”