Still Waiting, but Budget Picture Looks Bleak
By Dan Murphy
Two comments from City officials last month should raise the eyebrows of the residents, taxpayers and union employees of Yonkers. Both were honest assessments of how difficult the City of Yonkers budget for the next fiscal year will be without the help, in the form of a COVID-19 bailout, from Washington DC.
Mayor Mike Spano said during a Facebook live conference, “We have the potential for significant cuts because of the State budget and we don’t have the ability to close them.”
Yonkers Finance Commissioner John Liszewski. issued a similar alarm at a City Council budget committee last month when he said that a possible $70 Million State Education Aid cut to the Yonkers Public Schools, “is what keeps me up at night,” because of the severity of cuts and job losses it would entail.
What the Mayor was alluding to is that he will need help from the City’s unions to close the upcoming expected budget hole, and if the unions do not agree to ‘givebacks’ then layoffs of municipal employees will have to happen.
But givebacks in the City of Yonkers have been a rare occurance, with two reasons why the unions are not so eager for givebacks. First, Yonkers has always waited, and usually received a last minute bailout from Albany, and specifically from Governor Cuomo, or State Senate Majority Leader Andrea Stewart-Cousins, and dating back to former State Senator Nick Spano.
A last minute package of billions in State Aid, usually in the form of State Education Aid, would help close some of the budget gap, and a combination of smaller layoffs, and borrowing and not rehiring vacant positions, would close the rest.
This year is different, some will argue, because of the Coronavirus. Governor Cuomo is facing a $13 Billion budget hole in the State budget, and this time, its Cuomo who needs help from above, that being Washngton DC.
In Congress, the House has passed a $3 Trillion package of aid that includes funds for New York State government. If that bill were to pass, then Cuomo would have the funds to close his budget and he could then fund Yonkers, and the numbers in Mayor Spano’s budget plan would work; a 2% tax increase and no layoffs.
But in Wahington, US Senate Majority Leader Mitch McConnell and President Donald Trump have both said ‘no blue state bailout.’
So right now, the battle is between House Speaker Nancy Pelosi, US Senate Minority Leader Chuck Schumer from NY, vs. McConnell and Trump.
If Trump and McConnell win, then Yonkers will likely have an additional $10 Million hole in its budget. At least $10 Million, or up to $40 Million depending on how deep Cuomo will have to cut State Aid to Yonkers, which comes in two forms; Aid to Municipalities, AIM, is $108 Million per year to Yonkers, and State Educaiton Aid is more than $200 Million. A 10% cut to both leave a $30 Million hole in the Yonkers budget.
That is ontop of the budget hole that already exists in the Yonkers Public Schools budget. Mayor Spano’s budget plan, and the YPS budget, with increases for salaries and benefits, leaves YPS $22 Million short.
The Yonkers Federation of Teachers, YFT, has a contractural salary incrase of $21 Million due this year. YPS Superintendent Dr. Edwin Quezada, speaking to the City Council at recent budget hearing, said that he would be able to close his budget hole if the teachers delayed their salary increase and the City bonded the purchase of new books.
But the YFT hasn’t agreed to anything, nor has any Yonkers union. All of them want to wait to see what comes back from Washington.
One City Hall official quitely suggested a two week furlough for every Yonkers employee, which could raise close to $40 Million. While municipal governments across the country are moving forward with furloughs, it hasn’t happened in Yonkers in this reporters 20 years covering City Hall.
Some believe that it is the fairest way to spread out the budget pain, without layoffs, and employees losing their jobs. When layoffs do occur, it is the employee last hired that is first laid off.
The City Council has held two public hearings on Mayor Spano’s proposed budget. But this year’s budget public hearings were much diffeent that in year’s past. Due to the Coronavirus, there were no speakers, and the council met through video which was available to the public, and the council answered questions which were emailed to them.
Most of the budget questions focused on Library funding. Mayor Spano has proposed a status quo budget for the library, but the emails supported expanded programs, and attempted to protect library funding if the budget axe falls later this month or next.
Councilmembers are considering voting on Mayor Spano’s budget, despite all of the questions about Federal and State Aid. The budget includes a tax increase of 2.7% and if approved, the Mayor and Council would have to come back this summer and pass an amended spending plan if the money doesn’t come from Albany or DC.
But four votes are needed to pass a budget on the council, and it is unclear if there are four votes in favor. Finance Commission Liszewski wants to have tax bills mailed out next month and the only way to do that is with an adopted budget.
