Initiating and leading change in nonprofit, philanthropic and government settings.

Latest Columns

To Boost the City’s Recovery, Get ‘Learning Leaders’ Back in School

March 29, 2022

For State’s Future, The Governor Must Say No Sometimes

January 26, 2022

A better deal for retirees and NYC: But the city made two mistakes with its Medicare Advantage Plus plan

October 25, 2021

Who Decides How Public Money Is Spent?

October 15, 2021

The lame duck and the hatchling: How to run the transition between Bill de Blasio and his successor

July 5, 2021

Mayoral Candidates Flunk First Budget Test

March 5, 2021

Upending East Midtown’s progress: Gov. Cuomo’s new plans are threatening the office district’s growth

February 16, 2021

A Trumpian Push to Overturn the Will of New York City Voters

December 30, 2020

‘Hanging On’ is Not a Management Strategy

December 2, 2020

Letter to the Editor: The Assembly Member’s Bad Bank Note

September 28, 2020

Mayor Must Bridge Budget Gap Without Borrowing or Mass Layoffs

August 26, 2020

Now More Than Ever, New York City Needs Leaders to Welcome Jobs

August 11, 2020

Learning the Right Health-Care Lessons from the Covid Crisis

June 18, 2020

Keep Subways Closed Overnight to Expedite System Modernization

May 26, 2020

How to Craft the Bare Bones State Budget New York Needs

March 30, 2020

Lessons from 9/11: A Needed Piece of the Coronavirus Recovery Plan

March 26, 2020

The Governor’s Dilemma: Gimmicks or Gumption

March 9, 2020

Ruling Endangers Better Planning for City’s Future

March 9, 2020

Worrisome City Budget Update Buried by Holiday and State Woes

March 9, 2020

A Well-Meaning But Misguided Housing Proposal

March 9, 2020

Counting Votes So They Really Count

March 9, 2020

Attorney General Disrupts Progress on Taxi Loan Crisis

February 28, 2020

The Mayor’s Savings Mirage

February 4, 2020

Racing to the Scene of the Wrong Emergency

September 30, 2019

The Mayor’s Missing Pen

September 12, 2019

The Small Business ‘Crisis’ That Isn’t

August 22, 2019

A Chore We Must Do: Over-Hauling Private Waste Management in New York City

August 1, 2019

A French Lesson in Fare Evasion

July 16, 2019

Governor Gets What He Wants at the MTA; Now It’s Time to Deliver

June 25, 2019

The Fading Promise of Property Tax Reform

June 12, 2019

Taxi Medallion Exposé Drives Home Key Budget Lesson

May 29, 2019

‘Blow Up the MTA’? Not Yet

May 17, 2019

A Lion of City Government Issues a Warning

May 1, 2019

City Council Fire Department Proposals Don’t Match Need for Reform

April 17, 2019

Doing Good Things Badly: Congestion Pricing and MTA Reforms

April 3, 2019

Charter Revision Commission Needs a Hippocratic Oath

March 18, 2019

Ending The School Aid Charade

March 4, 2019

Latest Columns

Categories

Subscribe!

A Lion of City Government Issues a Warning

By Carol Kellermann | May 1, 2019
(photo: Michael Appleton/Mayoral Photography Office)

The dramatic growth in the size and cost of city government since Mayor de Blasio took office has been of concern to budget watchdogs: the number of city employees has grown by 35,000 and total annual spending by more than $20 billion since 2014.

The mayor’s latest budget presentation, delivered last week, came with talk of fiscal prudence, but assuaged few fears, including those of an unexpected new source adding his voice to those warning about the city’s long-term health.

The $92.5 billion proposed operating budget for the fiscal year that will begin on July 1 includes over $1 billion more in city-funded expenditures than was anticipated by the mayor’s Preliminary Budget released only a few months ago, offset by increases in revenue and “savings” through a variety of expenditure adjustments, netting out to an increase of about $350 million in planned spending since the mayor’s prior plan.

The budget for the coming fiscal year is balanced but the projected deficit for the 2020-2021 fiscal year is estimated to be $3.5 billion. The revised 10-year Capital Strategy is increasing a whopping $13 billion — to nearly $117 billion.

The mayor stressed that his plan is fiscally prudent and that new initiatives have been kept to a minimum out of an abundance of caution about possible threats to the city’s economic picture. But Citizens Budget Commission President Andrew Rein succinctly summarized the general reaction from watchdogs and other commenters:

“Mayor de Blasio’s stay-the-course budget does not take the steps needed to preserve services or forestall tax increases in the eventual hard times.”

Will our city’s elected leaders heed the warnings and restrain their impulse to find more “savings” and add more spending to the budget that is finally adopted by the end of June? Not if past behavior is any guide.

But perhaps they will listen to someone who should command respect from the mayor and City Council alike: Stanley Brezenoff.

Last Friday, the day after the mayor presented his updated budget plans, Stan received the Civic Fame Award from the Center for New York City Law at New York Law School. his remarks were reflections about his years in government and the nature of the three mayoral administrations he has served. They were thoughtful, nuanced, and unexpected.

Stan started out as a young activist in the civil rights movement working for the Reverend Milton Galamison, who led the fight for community control of city schools in the 1960s. Indeed, it was noted at the award ceremony that Stan had some trouble getting a full-time job in New York because he had so many arrests from protests on his record.  

Stan entered city government in the administration of Mayor John Lindsay, went on to various positions including as the first commissioner of the newly formed Human Resources Administration, was Executive Director of the Port Authority, and eventually became First Deputy Mayor under Ed Koch, which is when I first met and worked for/with him.

I was fortunate to work with Stan again when he was the Vice Chair and I was President of the September 11th Fund, and since then we have been friends and colleagues on various projects.

Given Stan’s extensive background and his long relationship with then-First Deputy Mayor Tony Shorris (who was his deputy and successor at the Port Authority), it is not surprising that Mayor de Blasio has relied on Stan to help deal with some of the weightiest challenges of his administration – first as an advisor on labor relations, then as Acting CEO of the city’s financially-strapped Health + Hospital system (which he ran 1981-1984), and most recently as Acting Chair of the beleaguered public housing authority, NYCHA.

So, suffice it to say, this is not someone who can be dismissed as a conservative, anti-government pundit who doesn’t care about the city’s social safety net or believe in unionized public employment. That is why his comments, while diplomatic, were especially noteworthy and startling.

His main points were:

-Mayor Lindsay came into office in 1966 at an important inflection point. He had an expansionist, activist agenda driven by social goals, i.e. equality and attention to the needs of the poor.

-Lindsay attracted a young, energetic staff that shared his agenda and they accomplished a great deal.

-But they were not prepared or oriented towards the tasks needed to manage the large business enterprise that is city government; hence the seeds of the fiscal crisis were sown.

-Mayor Abe Beame (1974-1977) and his administration lacked the understanding and tools to address the magnitude of the financial challenges that became apparent. Capital funding had been borrowed and used to support operating expenses and now the banks were refusing to loan the city government any more money.

-Mayor Ed Koch (1978-1989) brought a management perspective to the job. Because of the fiscal crisis the public psyche had changed and it became “easier to say no” to advocates and new social policies because there simply wasn’t enough money to do everything. Koch and his administration, subject to the constraints imposed by the Emergency Financial Control Act, engineered a financial turnaround that put the city on a stable footing.

-Moving forward to the present, the current administration is experiencing an extraordinary period of affluence that has enabled Mayor de Blasio, as did Lindsay, to focus on an expansionist social agenda. While his achievements –- e.g. universal pre-kindergarten, an aggressive affordable housing program – are laudable and important, there has been less attention to enterprise management functions and there are warning signs that good times will not last much longer.

-There has been little emphasis on efficient service delivery and achieving savings. The annual PEG (Program to Eliminate the Gap) that has been required by all mayors since Koch to exert savings discipline upon agency spending has been absent 2014-2018.

-This is the first budget of the de Blasio administration in which a PEG has been imposed, but it was “not very vigorous.”

-Good stewardship requires remembering and learning from history. Expansionist policies cannot be implemented without good fiscal management to sustain them.

Thus, in a very nuanced, diplomatic way, 40-year veteran of government Stan Brezenoff offered the same message as Andrew Rein from CBC: we are taking the good times for granted and are not prepared for a recession or some terrible crisis that rapidly decreases revenue and catches the city unprepared to fund all its current expenses and significant long-term liabilities.

City Council and mayor: listen up! Stan Brezenoff has committed his life to social justice. He is not anti-union or a believer in small government. If he is worried, you should be too!

Don’t make the situation worse by adding pet projects to what the Executive Budget already includes. Any more revenue that turns up should be put into reserves for that rainy day. We are far short of the $12-15 billion that would be needed to weather a recession.

The public and Stan B will be watching.

[Watch Stan Brezenoff’s comments in full here.]

***

Carol Kellermann was president of Citizens Budget Commission from 2008 through 2018.

This story was originally published on May 1, 2019 by Gotham Gazette.