Mayor Adams’ NYC Budget Faces Bigger Problems Than It Seems

New York City: Mayor Adams is in a tight spot with his reelection coming up. He recently unveiled a budget that he hopes will impress New Yorkers by showing he’s “investing” in programs they care about while keeping an eye on spending.

But here’s the kicker: the budget seems to follow the city’s usual pattern of overspending and underestimating costs. At first glance, the $114.5 billion budget might look good, with only a $2 billion increase from last year.

However, that figure is misleading. It’s actually $2 billion less than what City Hall claims it will spend by the end of this fiscal year. And as Andrew Rein from the Citizens Budget Commission points out, the budget is short by nearly $4 billion just to maintain current services.

This year’s budget is already $700 million in the red, mainly due to overtime costs. When you adjust for underbudgeting, city spending is set to rise by 6.7% in fiscal year 2025 and 5% in 2026, which is way above inflation.

Plus, this doesn’t even factor in the extra funds that City Council members will likely demand or any unexpected cuts from the state or federal government. The economy isn’t looking too hot either.

Adams has projected future shortfalls of $4.2 billion in 2027, $5.4 billion in 2028, and $5.1 billion in 2029. But the reality is even scarier, with actual gaps likely exceeding $25 billion.

So, the city might have to cut services, find money elsewhere, or hope for a miracle from the economy or higher levels of government.

While Adams has found some savings, the city has been spending too much for too long, and its budgeting is a real mess. As Rein says, “Hard choices and better management are needed to improve New Yorkers’ quality of life.”

Let’s be clear: the City Council, which needs to approve this budget, shares the blame. If City Hall can’t even provide a clear picture of how it spends taxpayer money, why should New Yorkers trust it to run the city effectively?