Search
Close this search box.

De Blasio To Bail Out Public Hospitals As NYC Tax Revenue Rises


debAfter three straight years of increased tax revenue, New York Mayor Bill de Blasio, D, intends to spend an additional $800 million next year to shore up the finances of money-losing public hospitals, clinics and nursing homes.

The mayor’s proposed $82.2 billion budget for fiscal 2017, which he will present Tuesday afternoon, includes $700 million more for hospital operations and $100 million in bond-derived capital funds. The infusion brings to $2 billion the total the city would spend on its 11 public hospitals and system of community clinics, assisted living facilities and home health care, according to a briefing memo released by the mayor’s staff.

The Health and Hospital Corp., the largest U.S. municipal health system, which serves 1.2 million people, faces a projected $2 billion deficit in 2019. De Blasio said the spending increase would help stabilize the system’s finances at a time of reduced federal and state support, and help create a revamped preventive health-care system focusing on neighborhood clinics and home-based care.

“This plan will not close any more hospitals or lay off any workers, but expand comprehensive health care, especially in high-need communities,” de Blasio said in a statement prepared for the budget announcement. “We are implementing long-term sustainable solutions, rather than band-aid fixes, to stabilize hospital finances and save our public health-care system.”

Elected in 2013 as a self-described progressive who advocated taxing the rich, he’s instead worked with the real-estate industry to push for developer subsidies in return for required minimum percentages of affordable housing units in new residential construction.

By February, the city collected $723 million more revenue than officials had anticipated in November, according to a March 1 report by Comptroller Scott Stringer.

The mayor also said he saved about $2.3 billion by eliminating waste and unsuccessful programs.

As sweeteners made possible by good times, de Blasio proposed a one-time $183 credit off a year’s water bill for 664,000 homeowners in single-to-three-family residences, and a $250 credit for 40,000 landlords operating buildings featuring “affordable apartments.”

The spending plan also calls for $1 billion in reserve funds through 2020, and a $500 million fund to protect against the risk that a spike in interest rates could cause the city’s debt service costs to soar. The mayor also set aside $250 million for a fund to pay for future employee health benefits, which would bring its total to $3.7 billion.

The 51-member City Council must approve a spending plan by June 30, the end of the fiscal year, after negotiations with the mayor.

(c) 2016, Bloomberg · Henry Goldman



Leave a Reply


Popular Posts