Comptroller Stringer Says NYC Will Have Extra $510 Million In Budget Than Predicted - Can Be Used To Settle Contracts

From the Wall Street Journal:

New York City Comptroller Scott Stringer is predicting an extra $510 million in revenue in next year's budget, a windfall that he fears could be eclipsed by the sum needed to settle the city's open labor contracts.

Mr. Stringer, who took office Jan. 1, attributed the gain to stronger-than-expected property tax revenue. It marks a slightly rosier financial picture than Mayor Bill de Blasio's administration drew last month when the mayor rolled out his $73.7 billion preliminary budget.

The comptroller on Wednesday is expected to present the brighter forecast to the City Council, where lawmakers are set to begin hearings on the mayor's budget proposal for the fiscal year that begins July 1. 

"There's definitely increased revenues but there's also some liabilities to be concerned about," said Mr. Stringer, a Democrat. The comptroller said that while additional revenue is a good sign, he remains concerned about what he calls the "Achilles' heel" of the city budget—the potential cost of resolving expired labor contracts for almost 300,000 workers. The city's unions are seeking more than $3 billion in retroactive pay.

The comptroller said he plans to continue to push for settling the approximately 150 open labor contracts by June 30, saying in remarks he plans to deliver to the council that resolving the contracts by then is "critical." 

"We need all hands on deck," Mr. Stringer said in an interview. "The longer it takes to resolve a contract, the larger the potential liability is to the city. You don't want uncertainty in your four-year financial plan."

Just something to keep in mind when the corporate press goes all hands on deck calling for 0% raises and contract concessions from the unions or the city will turn into Detroit.