NYC Common Sense released the following statement following passage of the 2026-27 state budget in Albany:
“The FY 2027 spending plan advanced by the administration is the epitome of robbing Peter to pay Paul.
“The executive budget relies heavily on a state bailout – the details of which remain uncertain – as well as a mixture of deferred costs, uncertain revenue streams, and a crafty use of financial sleight of hand.
“The governor herself has admitted that the fine print of the centerpiece of proposed new revenue – the pied-a-terre tax – in the city’s executive budget has yet to be finalized, and the estimated $500 million that City Hall projects it will generate annually is not a foregone conclusion.
“In addition, the state’s green light of City Hall’s desire to defer required pension payments, which still requires approval by multiple boards of trustees, is merely a band-aid that sets the city up for a whopping $7.6 billion in additional costs over the next decade. Meanwhile, Albany’s Tier 6 pension changes will be adding another estimated $1.4 billion in costs over that same period.
“Choosing a short-term win over long-term fiscal stability is both irresponsible and dangerous. It kicks the can down the road on hard choices like service and program cuts that New Yorkers can ill-afford.
“In addition, City Hall’s tardiness in sending its proposal for delaying a smaller class size mandate to Albany means that the announced $500 million in savings to help close the deficit was not included in the final state budget, and there is no clear timeline for its passage.
“The truth is that the finalization of the state budget has raised more questions than answers when it comes to the so-called ‘balanced’ city executive budget – questions that must be addressed as budget negotiations with the City Council continue.”
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