Mayor de Blasio’s preliminary budget proposal will require city departments to make spending cuts for the first time in his administration — as personal income tax revenue plummets by $935 million compared to last year.
“We well may have to limit some of our investments or slow down some of our investments or in fact to cut some programs and some investments outright,” de Blasio said. “We have some tough choices up ahead under any scenario.”
Still, the proposed budget has grown again — this year to $92.2 billion, up from last year’s $89 billion adopted budget.
It is the mayor’s sixth proposed budget but the first to contain what’s called a Program to Eliminate the Gap, or PEG — a requirement for agencies to cut spending by a certain percentage. The goal of the PEG is to save $750 million, City Hall said. The city has also identified another $1 billion in savings, according to the Mayor’s office. De Blasio has for years resisted using a PEG, even as City Council members and Controller Scott Stringer had called for one.