The Big Apple’s budget will swell to a record-breaking $106.7 billion in 2024 because of the surging migrant crisis, inflation, and a string of new labor deals, Mayor Eric Adams is slated to announce later Wednesday, The Post has learned.
The budget deal, which will be formally announced at 2 p.m., is a $4 billion increase on what the mayor had pitched in his fiscal proposal back in January.
Hizzoner said the increase in spending will be offset by $1 billion in new state grants that will go towards covering the $1.4 billion the city has already forked out on shelter and social services for migrants within the last year.
But what Gov. Kathy Hochul and state lawmakers are expected to give with one hand, they’ve partially taken away with the other — forcing Adams to find $150 million annually to help fund the cash-strapped Metropolitan Transportation Authority.
“These are extremely challenging times,” Adams told NY1 just hours before rolling out the budget.
“When you look at Wall Street as the economic engine of our city, there is a real downturn from the 2021 days. It just doesn’t exist. It’s going to impact our tax base. It’s going to impact how much dollars we have available to run our city.”
The anticipated $4 billion rise in city spending comes as Adams is expected to acknowledge his third round of ordered budget cuts wasn’t as successful as he’d hoped, sources said.
Earlier this month, Adams had ordered city agencies to slash 4% — or roughly $1 billion — annually for the next four years as part of his belt-tightening Program to Eliminate the Gap (PEG).
The Fire Department, Department of Sanitation and Human Services Administration were three major agencies that failed to find the required savings, according to sources.
Officials said that the biggest new tab city taxpayers face is financing new and coming contracts with the municipal labor unions, which the spending watchdog — Citizens Budget Commission — estimated will cost $17 billion over the next five years.
Additionally, the budget documents released by City Hall show that the Adams administration expects to blow last year’s approved budget by nearly $8 billion, with spending in 2023 projected to hit nearly $109 billion, sources said.