By Mara Gay
New York City is more than $1 billion short of the reserve funds
it needs to weather a financial crisis, according to city
Comptroller Scott Stringer.
A report prepared by Mr. Stringer's office found that the city
has about $8.5 billion in reserves it can use in a bad economy, or
about 10% of the city's $80.65 billion adjusted operating budget in
fiscal 2016, which began July 1.
"New York City is making progress toward increasing our
budgetary cushion, but we've got a good way to go before we're back
in a truly secure position," Mr. Stringer said.
The reserves grew by $3.8 billion in the past year and a half as
Mayor Bill de Blasio added funds in an improved economy.
But Mr. Stringer, the city's chief financial officer, said the
reserves should be between 12% and 18% of the city's annual
adjusted operating budget.
Officials in Mr. Stringer's office said they arrived at that
range by reviewing the city's performance during the downturn after
the Sept. 11 attacks in 2001 and the latest recession.
A spokeswoman for Mr. de Blasio noted the increase in the
reserve funds since the mayor took office. "Fiscal responsibility
is a cornerstone of the de Blasio administration," said Amy
Spitalnick, the spokeswoman.
Mr. Stringer, who like Mr. de Blasio is a Democrat, has emerged
as a sometime-critic of Mr. de Blasio.
Last month, he came out in opposition to bill backed by Mr. de
Blasio aimed at car-service giant Uber Technologies Inc. that would
have temporarily capped the number of livery cars in the city. The
proposal was tabled after the city reached an agreement with
Uber.
Mr. Stringer released the report ahead of a Financial Control
Board meeting scheduled for Tuesday. The state board has the power
to take over the city's finances if it fails to balance the
budget.
During the early stages of the recession in 2008, the city had
amassed about $10.9 billion in reserves, or about 17% of its
adjusted operating budget, funds former Mayor Michael Bloomberg
used to help balance the budget. By mid-2013, the city had depleted
$6.2 billion of those funds, according to they city comptroller's
office.
Carol Kellermann, president of the Citizens Budget Commission, a
nonpartisan civic organization, said Mr. Stringer's call to boost
the reserves further is "an excellent idea."
"We're not prepared for a recession," Ms. Kellermann said.
Write to Mara Gay at mara.gay@wsj.com