By Mara Gay
New York City Mayor Bill de Blasio is expected to roll out an $84.67 billion budget proposal on Tuesday, city officials said.
Mr. de Blasio's budget proposal would increase spending by some $1 billion ahead of the city's current, $83.5 billion budget. It comes at a time when the economy is strong but budget hawks have cautioned against rising pension costs, particularly as the city adds thousands of workers to its payroll.
Moody's, the ratings agency, released a report Monday that said the city had the revenue and economic growth to sustain those increases in spending. Analysts there said while the city's fixed costs from pensions and other obligations have grown by an average of 3.9% over the past five years, the costs remained moderate compared with other major cities.
"That obviously is a budget driver," said Nicholas Samuels, a vice president at Moody's.
"But tax revenue has grown faster than that," he added. "The city has really tremendous economic and revenue generating capacity."
The company also said the city's fiscal outlook would be impacted by the some $20 billion the city plans to spend on infrastructure and other improvements to protect the five boroughs from the effects of climate change and events such as superstorm Sandy.
The proposal is preliminary. The City Council will hold budget hearings over the next few months ahead of the mayor's executive budget proposal, which must be approved by the council by June 30.
A spokeswoman for Mr. de Blasio didn't immediately respond to a request for comment.
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(END) Dow Jones Newswires
January 23, 2017 19:44 ET (00:44 GMT)
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