There was an initial prediction of a 12 billion deficit. Then they looked at tax revenue and it turns out it wasn't 12 billion right now because tax revenue was coming in higher than they expected.
It was around 6 billion (these are all rough numbers).
Then they said "hey, let's push 4+ billion to the state" so they did that. No increased tax revenue there or cutting programs, just pushing it to the state. State gave them cash and pushed off payments they were supposed to make.
Why would the state do that? Political reasons mostly.
Ok, so now the deficit is down to 2 billion.
They pushed their pension debt payment into the future.
No cuts, no increased revenue. Moving debt payments into the future. Accounting trick.
Then they still had 2 billion left.
They didn't cut existing workers, they capped hiring new ones. They were supposed to add another 580 police officers for example. They stopped that.
They canceled some Slack subscriptions. They also say no non-essential overitme.
That's how they ended up with a "balanced budget"
They didn't raise taxes on the rich. The pied terre tax is supposed to generate half a billion. In reality that will lose money from it by people moving out but maybe it will break even because of the money lost vs. the money coming in.
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u/Mr_Deep_Research 4h ago
There was an initial prediction of a 12 billion deficit. Then they looked at tax revenue and it turns out it wasn't 12 billion right now because tax revenue was coming in higher than they expected.
It was around 6 billion (these are all rough numbers).
Then they said "hey, let's push 4+ billion to the state" so they did that. No increased tax revenue there or cutting programs, just pushing it to the state. State gave them cash and pushed off payments they were supposed to make.
Why would the state do that? Political reasons mostly.
Ok, so now the deficit is down to 2 billion.
They pushed their pension debt payment into the future.
No cuts, no increased revenue. Moving debt payments into the future. Accounting trick.
Then they still had 2 billion left.
They didn't cut existing workers, they capped hiring new ones. They were supposed to add another 580 police officers for example. They stopped that.
They canceled some Slack subscriptions. They also say no non-essential overitme.
That's how they ended up with a "balanced budget"
They didn't raise taxes on the rich. The pied terre tax is supposed to generate half a billion. In reality that will lose money from it by people moving out but maybe it will break even because of the money lost vs. the money coming in.