(Bloomberg) -- New York City’s mayor and council struck an agreement on a $92.8 billion budget for the 2020 fiscal year that increases the government’s reserves and boosts spending for school social workers, senior housing, and pre-kindergarten teachers.
The budget, $300 million more than the plan proposed by Mayor Bill de Blasio in April, includes funding to place 200 social workers in public schools and adds $275 million over the next three fiscal years to create 800 affordable homes for seniors.
One big issue that held up an agreement included a council demand that the mayor increase “rainy day’’ reserves by $250 million. Comptroller Scott Stringer and business-backed watchdog, the Citizens Budget Commission, also urged him to stash more money away. De Blasio acquiesced and reserves will grow to a record $5.7 billion.
A “garden-variety recession” with a 2% drop in economic activity could cause a significant dent in the $68 billion in taxes and fees the city expects to collect in 2020, according to Adam Kamins, a senior economist at Moody’s Analytics’ Economy.com.
City Council Speaker Corey Johnson said Thursday that personal income-tax revenue has come in at about $450 million more than had been predicted when the mayor presented his executive budget in April. That spending plan cut about $155 million from programs supporting libraries, parks and other programs.
De Blasio’s executive budget, presented in April, called for capital spending financed through bonds that included $16 billion for school expansion and renovation; $13 billion for road and bridge repair; $10 billion for new and preserved “affordable housing;” $9 billion to build small, locally based jails; and $7 billion for water-supply maintenance.
To contact the reporters on this story: Henry Goldman in New York at firstname.lastname@example.org;Martin Z. Braun in New York at email@example.com
To contact the editors responsible for this story: Flynn McRoberts at firstname.lastname@example.org, William Selway, Michael B. Marois
©2019 Bloomberg L.P.