Mayor Bloomberg outlined te preliminary $68.7 billion net total
buget for the fiscal year 2012, which begins July 1, in the
Green Room of City Hall NYC yesterday.
The biggest issue facing a balanced budget in NYC is the huge
growth in pension costs. The pension system is a ticking time
bomb. The mayor's office is working in partnership with Gov.
Cuomo to defuse its impact.
Governor Cuomo outlined pension reform in this 2012-2013
Executive Budget and Reform Plan, which proposes creating
a new tier in the state pension system that would save the
state and local governments outside NYC $83 billion and NYC
an estimated $39 billion over the next 30 years.
Both the governor and the mayor emphasized the reformed
system, if approved would only apply to new hires. The
Citizens Budget Commission calls it a more flexible pension
plan because future employees would be able to choose
between a more traditional defined benefit pension plan
with a long vesting time to become elgible for benefits or
a defined contribution 401 (k) style plan that is used
widely in the private sector.
Pension costs and fringe benefits for the city's uniformed
workers are projected higher than their salaries and wages
in the budget. For all city workers, the projected cost is
more than 70% of pay.
At $13,649 billion, the cost is six times higher than 10 years
ago.
Sheila McKinney
