New York Housing Conference released a policy brief this week showing that the city’s capital cuts save very little money in the current operating budget but have significant costs to the city. We also find that given the current economic conditions, now is the right time to invest in housing through the city capital budget.
In our analysis, we find that the $1 billion in cuts to the capital budget will save at most $30 million in the city’s operating budget this year. Meanwhile the cuts will cost 21,000 units of affordable housing, over 34,000 jobs and almost $8 billion in economic activity.
The cuts also miss an opportunity to invest and promote economic recovery while interest rates are near historic lows, the city’s cash flow is stable, and the city’s bond ratings remain strong.
This new information confirms that Mayor Bill de Blasio’s cuts to the housing budget are penny-wise but pound-foolish. We urge the mayor to reverse the cuts and we ask you to join our campaign. Sign on to our letter to Mayor de Blasio calling on him to reverse the cuts in his upcoming adopted capital commitment plan here by Friday, October 23.