Citizens Budget Commission (CBC) President Andrew Rein released this statement on the New York City budget today on behalf of CBC:

"The New York City budget adopted 64 days ago commits to $1 billion in recurring savings from negotiations with labor unions; however, to date apparently no savings have been agreed upon. The Mayor presents New Yorkers with a false choice: either borrow to fund operations or lay off 22,000 municipal employees. Neither currently is necessary and both have far reaching negative impacts.

Instead, the Mayor should use the tools at his disposal, including greater efficiency, cost-cutting, and spending restraint at agencies; workforce reduction through attrition; and collaborating with labor unions on reasonable solutions.  

CBC’s latest report, released today, outlines 18 ways the City and labor unions can meet the target—including reforming health insurance benefits and improving productivity through changes to work rules codified in labor contracts—and avoid layoffs. Savings from fully implementing these options far exceeds $1 billion. Additional savings also should come from a much more assertive hiring freeze, which will allow attrition to reduce the workforce rather than layoffs. 

The City’s municipal labor unions have been integral to the management of prior fiscal crises; union leaders have made concessions or signed agreements generating savings in every recession or crisis since the 1970s. To navigate this crisis and emerge on a firmer fiscal footing, City leaders should make hard choices and collaborate with stakeholders—including public labor unions—to contribute to the solution."

Read the report here.