ALBANY — In his final budget testimony to the state legislature, Mayor de Blasio did something he’s done many times before — he demanded that state lawmakers tax the wealthy.
With both the state and city governments facing huge budget gaps in the years ahead, that call has gained traction both in New York City and Albany. But on Thursday, in testimony delivered remotely from City Hall, de Blasio offered little in the way of detail on how he would actually like to see such a plan carried out.
“I don’t have my own independent tax suggestion for the state,” he said in response to questions from state Sen. Jim Gaughran (D-Suffolk). “I want to just tell you directionally, but I’d be happy to give you further detail.”
De Blasio said he would rather see taxes on the wealthy restored on the federal level, but because that’s unlikely he is pushing for the state to do so.
The reason for his push is clear.
The city has lost $10.5 billion in tax revenue because of the pandemic. And under Gov. Cuomo’s executive budget proposal, de Blasio testified the city would lose a lot more: $800 million in state education funding, $472 million in health care cuts as well as potential cuts to police funding.
De Blasio on Thursday urged state lawmakers to “help in standing up” against the “painful cuts” in Cuomo’s spending proposal.
Those cuts, he said, would force the city to close 19 of its Health + Hospital clinics, lay off 900 doctors and nurses and prevent the city’s 1,600 schools from providing remedial education services and restoring arts, AP and algebra classes.
Last month, Cuomo proposed a pair of state budget proposals, both of which rely upon New York receiving federal COVID aid from Washington. The governor is hoping the Empire State receives at best $15 billion in funds, but also presented a “worst-case scenario” in which New York only gets $6 billion.
Cuomo budget spokesman Freeman Klopott suggested de Blasio check his math and said that any tax increases should be instituted at the federal level.
“Let’s be clear: In the midst of a global pandemic and the worst economic downturn in generations, funding in the Executive Budget for New York City goes up $1.3 billion, including a 13% increase for schools — significantly higher than the statewide average,” he said. “Raising taxes is best done at the federal level so as not to pit one state against another, and right now we all need to keep our focus on Washington to ensure the critical resources it is poised to deliver to the state and the city are fair.”
Klopott also said that the mayor failed to mention that Medicaid funding supporting H+H is going up over $1.4 billion during the current and coming fiscal years.
Asked about his past pleas for $9 billion in borrowing power to cover the city’s operating expenses, de Blasio said the Biden administration’s promises to increase state and local aid have put the plan on the back burner.
“Right now, we’re very hopeful there’s going to be a serious federal stimulus aid,” he said in response to questions from Sen. John Liu (D-Queens). “At this moment I’m not focusing on borrowing authority … I’m hoping we can find much better solutions.
“No one wants to borrow if you don’t have to borrow,” he added.
Hizzoner also pushed back on Cuomo’s proposals to expand the Javits Center and convert commercial properties to residential use, arguing the governor’s plans would “undermine the rights of communities to determine their own destiny when it comes to land use.”
De Blasio said the idea of converting empty office space to housing has “merit,” but said he’s worried about the state “cutting out communities” and “making sweetheart deals with the real estate community.”
“If you look at the proposal, it leaves several ways out for the real estate industry to not create affordable housing,” he said, defending the city’s often byzantine land use process.
Cuomo officials argue that the governor’s proposal allows officials to fast track much-needed affordable and supportive housing and bypass what would typically be years of bureaucratic red tape.
Cuomo also outlined an ambitious development plan during his State of the State address that would transform Manhattan’s West Side, with a $1.5 billion Javits expansion being the first step. His budget includes legislation that would essentially issue permits that his office says are in accordance with New York City building codes.
As for the governor’s requirement that all police departments in the state put forth reform plans to improve community relations by April 1, de Blasio said the city is on track to submit its proposal.
The mayor said he is working with the City Council on reforms and balked at the governor’s threat to withhold funds and his support of an outside monitor, saying that Cuomo’s approach “points us in the wrong direction.”
“We are absolutely on target to pass the appropriate Council resolution by the end of March,” he said. “We think we understand exactly what’s needed in terms of robust engagement and then putting together a plan to advance reforms.”
The mayor also managed to take a shot at the governor’s expanded emergency powers during the pandemic, as the pair have sparred in recent days over vaccine distribution and other health measures.
“We all say that we want a recovery. Well, recovery means going back to normal, it means restoring the things that we’ve had — not living in a state of emergency for the rest of our lives,” de Blasio said. “If you believe in recovery, you should also believe that local governments can manage their own affairs and protect their own people.”
Cuomo spokesman Peter Ajemian pushed back in a Twitter statement, reminding the mayor that any executive order issued by the governor can be reversed by the Legislature.
“The mayor doesn’t understand the law — any EO can be reversed by a simple resolution of the houses, which is in session,” he said. “As far as the mayor saying he knows what he is doing, I respectfully suggest that every poll suggests the people of NYC strongly disagree.”
