Unresolved union contracts are the “Achilles’ heel” of Mayor de Blasio’s budget, city Controller Scott Stringer warned Wednesday.
The de Blasio administration must reach pacts on the expired contracts by June 30, the end of the current fiscal year, or risk budget chaos, Stringer said.
The budget “does not provide or adequately anticipate the resolution of some 150 outstanding labor contracts,” Stringer said.
More than 300,000 city employees are working under expired contracts.
De Blasio’s budget socks away some cash that could be used for labor deals — including $1 billion in a health care fund and $300 million he added to the city’s general reserve.
But unions are fighting for retroactive raises, which could total more than $7 billion by some estimates. The proposed budget assumes workers will get only 1% raises going forward.
Stringer said it is “critical” that de Blasio strike new deals by the end of June, the deadline for the City Council to pass a budget.
“Our municipal workers have waited too long for a settlement, and our taxpayers need to know the true state of the city’s fiscal situation,” he said.
Pushing past that deadline, Stringer said, increases the chances the contracts will end up in the hands of labor arbitrators who could force the city to cough up more cash.
Carol Kellermann of the Citizens Budget Commission said it would be “challenging” for de Blasio to reach labor pacts before summer.
She said Stringer was trying to light a fire under the administration but added: “I don’t know that they need anybody to give them that sense of urgency. I think they feel it.”
The controller did not directly answer when asked whether the city could afford to give workers retroactive raises.
A de Blasio spokesman did not spell out when the administration expects to have the contracts resolved.
“We agree with the controller that the unprecedented number of outstanding labor contracts constitutes a significant challenge,” said spokesman Phil Walzak.
