Attempting to bolster his reelection prospects, Mayor Eric Adams Thursday launched a “best ever” $115.1 billion funds proposal that cites greater than 70 investments starting from schooling (together with Pre-Ok and after-school applications), housing vouchers, meals help and elevated funds for nonprofit social service suppliers.
However amid the hoopla — and a joyous speech held at his alma mater, Bayside Excessive Faculty — there looms the chance of an financial recession and plans by the Trump administration and Republicans in Congress to slash funding to states and cities and the nation’s social-safety web.
The mayor even admits the funds may already be old-fashioned.
Adams elevated the quantity of tax income town expects for the fiscal yr starting July 1 by $1 billion however famous that the funds is predicated on financial circumstances earlier than April, when President Donald Trump started imposing tariffs which have led to dramatic declines in inventory and bond markets and a pointy slowing of financial exercise.
“We see uncertainty on the horizon, due to recent federal policies, shifting tariffs,” the mayor mentioned.
Already a battle has damaged out over whether or not town ought to bolster reserves by utilizing a surplus anticipated within the present yr.
Thursday morning, metropolis comptroller and mayoral candidate Brad Lander reiterated his name for including $2 billion to reserves. Talking at a housing discussion board at NYU’s Furman Heart, he mentioned he anticipated federal cash for rental vouchers to be lower and that the cash may very well be used to fill within the hole. He later charged the Adams proposed funds got here from “a fantasy land.”
Metropolis Council Speaker Adrienne Adams, one other mayoral candidate, additionally mentioned she supported a rise in reserves on the similar occasion.
Funds-watchers agreed.
“We should be putting $2 billion into the rainy day fund and reserving another billion dollars for next year’s general reserve, which would help buttress against the initial impact of federal spending,” Andrew Rein, the president of the Residents Funds Fee, mentioned following the funds speak.
State Comptroller Tom DiNapoli mentioned the mayor was not dealing with as much as the fiscal realities. “Realistic revenue and spending projections and increasing contingencies or reserves are essential,” he mentioned.
Nonetheless, the mayor tried arduous to make the case that his funds was good for New Yorkers.
“With this investment we are making life easier for families across the five boroughs for generations to come,” the mayor mentioned throughout his presentation.
His proposal consists of an $309 million improve in spending on the NYPD over final yr’s proposed funds to convey the division’s funds to $6.1 billion, with the purpose of accelerating the variety of uniformed officers to 35,000 this yr.
He additionally changed $199 million in schooling {dollars} that had been beforehand funded with one-time one-time federal COVID-19 stimulus cash, overlaying applications that embrace 3K, arts schooling and instructor recruitment.
The mayor’s proposal additionally consists of $494 million in library spending break up among the many metropolis’s three methods — a $15.7 million improve over final yr’s funds plan however a decline over present spending.
Town’s Parks Division noticed a $49 million improve from final yr’s adopted funds, as much as $667 million.
New Yorkers United for Youngster Care Govt Director Rebecca Bailin welcomed the mayor’s dedication of $192 million to proceed to fund 3-Ok applications and $25 million to pilot prolonged day take care of pre-Ok and 3-Ok youngsters — however chastised Adams for having shortchanged youngsters previously.
“Rather than patting himself on the back for the ‘best budget ever,’ Mayor Adams should admit that his previous cuts have already done significant damage by driving scores of families out of our city,” she mentioned in an announcement. “Now our task is to bring them back and ensure that New York can be a city where anyone can raise a family —- not just the wealthy.”
Mayor Eric Adams delivers his govt funds at Bayside Excessive Faculty in Queens, Might 1, 2025. Credit score: Ben Fractenberg/THE CITY
Adams boasted repeatedly about “baseline” funding — emphasizing that his funds now extra precisely acknowledges the sum of money town initiatives to spend for recurring applications reminiscent of college nurses and litter basket assortment. But whereas college students behind him held up indicators saying his actions had been “forever,” the risk nonetheless looms of agency-level cuts, which Adams has ordered all through his tenure.
Baselining funding “is the right thing to do to represent your plan,” Rein instructed THE CITY. “But it doesn’t mean the budget has the revenue to support it,” he mentioned.
The mayor isn’t alone in ignoring the financial storm clouds and what’s taking place in Washington. The $214 billion state funds being permitted in Albany this week additionally doesn’t improve reserves, and it will increase state spending by greater than 5%.
Gov. Kathy Hochul has mentioned the legislature may must return to Albany to revamp the funds if revenues falter or congressional Republicans scale back the greater than $90 billion in federal assist included within the state funds.
She has additionally requested for emergency powers to cut back spending if essential.
With many members of the Metropolis Council operating for reelection and the speaker operating for mayor, the legislators have little incentive to problem the mayor’s optimistic strategy. At a press briefing Thursday afternoon, Council Speaker Adams and Funds Chair Justin Brannan gave the mayor’s proposal an unusually heat reception, pointing to various funding bumps the Council had been advocating for.
“It’s great to see. It shouldn’t have taken this long,” Brannan mentioned. “The areas that we fight for are priorities that are universally popular. I don’t think there’s anything controversial about funding the parks and the libraries and our early child education system.”
Earlier this week, Brannan instructed THE CITY he didn’t suppose reserves needs to be elevated within the new funds, however declined to instantly reply a query on reserves at a briefing Thursday afternoon.
“We remain concerned so I think there needs to be a balance of making sure we have enough money set aside…but that we’re also allocating money into the programs and getting money into the communities where they need it most,” he mentioned.
However the mayor is operating massive dangers if the funds falls aside within the fall since he’s skipping the Democratic celebration and operating as an impartial within the November common election, when the Democratic nominee will have the ability to make Adams’ monetary administration a marketing campaign problem.
A number of candidates issued sharp critiques of the Adams proposal. Former Gov. Andrew Cuomo, who leads the polls within the Democratic major by a large margin, had nothing to say.
Extra reporting by Gwynne Hogan.
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