Fiscal Watchdog: City Health-Benefit Costs A Long-Term Worry

The annual cost of servicing New York City’s long-term debt and pension obligations continues to consume an increasing share of its budget, with more than $1 of every $5 in the operations budget being spent on these legacy costs, according to an analysis by the Citizens Budget Commission, a non-profit fiscally conservative think tank.

In fiscal year 2019, the expenditure on items like debt service for capital construction will account for 21.1 percent of the city’s annual operating budget. “By fiscal year 2022, legacy costs are projected to reach $21.9 billion or 22.7 percent of total expenditures,” the CBC reported. “These liabilities totaled $252.5 billion at the end of fiscal year 2017—approximately $81,100 per household.”