$3.7B surplus, but Prez cuts put it in peril

ALBANY — New York City has a $3.7 billion budget surplus — but the good times may be short-lived because of President Trump’s proposed budget, the state controller warned Thursday.

In his annual review of the city’s financial plan, state Controller Thomas DiNapoli (photo inset) found the city’s budget for the 2018 fiscal year was balanced — but at risk of losing “substantial federal funding” in the coming years.

“The President’s proposed budget would make steep reductions in programs upon which city residents rely and poses a major risk to future city budgets,” he said.

DiNapoli said the city receives about $33 billion in federal aid annually, including Medicaid funds which could be in jeopardy if Congress moves ahead with Trump’s plans to repeal of Obamacare.

Under the American Health Care Act — the House-approved bill that would repeal the Affordable Care Act — the more generous Medicaid funding that came with Obamacare would be eliminated starting in 2020.

DiNapoli’s office estimated the city would lose $305 annually beginning in 2020 from the loss of Obamacare Medicaid funds.

In addition, federal cuts to the Health and Hospitals Corp., the city Housing Authority and the MTA could add to the city’s fiscal burden, the controller warned.

“The city should continue to increase its reserves to cushion against the potential for federal budget cuts and the possible roll back of the Affordable Care Act,” he said.

DiNapoli also warned that weakening tax collections pose a risk to city finances. Collections grew by 3.2% in 2016, but that was less than half the average gains experienced from 2011 to 2015. Tax collection growth is projected to slow to 2.3% in the current fiscal year and increase to 3% in 2018.