Title: What's in the Mayor's Budget Proposal?

Brian Lehrer: Brian Lehrer on WNYC. So Mayor Adams gave his annual budget address yesterday at his alma mater and mine, Bayside High School in Queens. And while he acknowledged he didn't do that well in high school, his report card on his budget were straight As.

Mayor Adams: It is no exaggeration to say that our fiscal year 2026 executive budget is the best budget ever.

Brian Lehrer: Well, ever is a long time, but I wish I got to grade myself at Bayside High School. But seriously, the content of the proposed budget is making a lot of news for how optimistic it is mostly and how much he is proposing to add to a number of programs after the budget battles between him and City Council. The last few years were more notable for things he proposed to cut to keep the budget balanced during COVID and at the peak of the influx of asylum seekers. And as with any politician running for another term, it's also an election year budget.

We should acknowledge that, as our Elizabeth Kim reports on Gothamist. Facing low approval ratings, she writes, Adams is pouring more spending into popular programs. Among the highlights was the decision to expand after school to 20,000 elementary school students over the next three years, a plan that one of his mayoral rivals had made the centerpiece of his own campaign, Liz wrote. That's State Senator Zellnor Myrie by the way. And what this optimistic budget doesn't seem to reflect, according to the reporting on it, is much that accounts for Trump funding cuts or the possibility of a recession affecting city revenues or other effects of the Trump tariffs. About that, the mayor from the Bayside High School stage said this.

Mayor Adams: If we sit back and just have a doomsday scenario that hey, recession is coming, recession is coming. So we're not going to deal with these issues that people are facing right now, then that would be irresponsible of us.

Brian Lehrer: Another area of proposed increased spending, Liz Kim's reporting on Gothamist notes that the mayor's budget also emphasized policing and public safety, another key issue in the mayoral campaign, despite notable drops in crime on the mayor's watch. As Liz reports, his budget sets aside funding to increase the size of the city's police force to 35,000 by the fall of 2026.

With us now is New York City's first deputy mayor, Randy Mastro. He was appointed to the role after the previous first deputy mayor, Maria Torres-Springer and three other deputy mayors resigned from the Adams administration in February. You'll remember those resignations came after President Trump's Justice Department dropped criminal charges against the mayor, saying it was because the prosecution, "has unduly restricted Mayor Adams' ability to devote full attention and resources to the illegal immigration and violent crime."

Mastro himself has a long track record in and out of government, including as a deputy mayor for Rudy Giuliani, a Chris Christie appointee to investigate Bridgegate, a lawyer representing New Jersey in its fight against Manhattan's congestion pricing, and chair of the good government group Citizens Union recently, among many other things, Deputy Mayor, thanks for coming on. Welcome to WNYC today.

Randy Mastro: Well, a pleasure to be with you again, Brian. And I guess I got here just in time to help Mayor Adams produce the best budget ever. [inaudible 00:03:33] a lot of budgets. As you pointed out. I've been in and out of city government a number of times, and to me, this is the most satisfying budget I've ever participated in. We've invested in the city's future, in public safety and affordable housing and job opportunities, and most of all in our children who are our future.

Brian Lehrer: Did you compare it to the budget of 1878 or 190-- I'm kidding. But if I could start with a little bit about you for people who may not follow the news that closely but are like, I know that name. Why did you take this job after your predecessor and three other deputy mayors resigned? After the way the federal corruption charges were dropped? They said it was, "to stay faithful to the oaths we swore to New Yorkers and our families." So why do you think working for Mayor Adams under these circumstances doesn't violate an oath to New Yorkers?

Randy Mastro: I took this job to be faithful to that oath because I have served before. I am here to serve New Yorkers and act in the best interest of the city to help this government move forward and make progress. And that's exactly what we have just done. And I'm very proud of what this administration, this team, this mayor has done. So we should talk about that budget, Brian, because it's a remarkable investment in New York City's future that all New Yorkers can be proud of.

Brian Lehrer: We will talk explicitly about the budget after one more question about you. Is there a through line to your career as you see it, U.S. attorney's office in the 80s, Giuliani administration in the 90s, Governor Christie, in your capacity with him, some of your private law firm work, also Citizens Union, or helping New Jersey fight congestion pricing. Do you have sort of a central organizing principle for what impact on public policy Randy Mastro has tried to have?

Randy Mastro: Yes. And as part of that through line, it should be year after year after year, a commitment to pro bono service and advancing causes for civil rights, constitutional rights and social justice on a pro bono basis while maintaining one of the most active private practices in my profession. So what is the through line of my career? It's a commitment to serve in a legal profession. That's a calling. Public service is a calling. There is dignity in public service. And even while one is not in public service, there is dignity in service to community, to pro bono causes.

That's why I chaired Citizens Union. That's why I served for 10 years on the CUNY board. That's why I was vice chair of the Legal Aid board. That's why I was part of groundbreaking pro bono cases that got funds released to 9/11 firefighters’ families when they were being held back. 70 million raised for those families that wasn't being released to them. That's why I represented in the 90s a really heroic Black schoolteacher, Janet Morgan, who got fired from her middle school public school class for giving them an assignment on racism. She stood up for academic freedom and we prevailed.

And that's why I sued on behalf of racial justice protesters at the People's Park, Lafayette Square Park, across from the White House, after George Floyd's murder in June 2020, about the atrocities that were done to them at the hands of federal authorities. I've been drawn to the law and to public service for the same reasons. A passion for justice, for service, and for achieving positive ends for the public and for those underrepresented. So that's really the hallmark of my career. Passionate advocacy for causes for justice and for public service.

Brian Lehrer: And fair enough to include your pro bono work in addition to the paid positions that I cited earlier. Let's get to the budget. I cited a few things in the intro. Now I'll give you an open mic to say what you would like people to know about what the mayor is proposing.

Randy Mastro: Well, I want New Yorkers to understand how we got here because the sound fiscal management of the city over the last three plus years got us to this point where this administration and this mayor were able to make an investment in the city's future, acting prudently, knowing that there are issues likely to arise in Washington and in Albany, but prudently being able to invest in our city's future.

And I say that for this reason, Brian, this administration had to deal with the twin crises of COVID recovery, where the city had lost over a million jobs. And it then had to deal with the migrant crisis where we were flooded with over 230,000 migrants into our city and had to take on that extraordinary crisis. And it blew a $7.5 billion hole in our city's budget. But through sound management that more than 230,000 migrants in cities public assistance programs has now been worked down to under 40,000.

So with the enormous multi billion dollar savings from that sound management, we were in a position coming into this budget for the first time. I arrived literally just in time. We were able for the first time to be able to actually invest in the city's future because billions in expenses on migrants had been worked down to more reasonable levels. And last year was a record year for revenue in our city. The economy and the city doing extremely well last year and into the first quarter of this year. So we were able to invest in our city's future prudently, Brian.

But in public safety, job one, make our city safer. Crime is way down to record or near record lows in shootings, murders, major crime down double digits the first quarter of this year. But incredibly, that was with a police force that has been depleted in size. And imagine what we will be able to do with 3400 more cops. Getting ourselves back up to 35,000 cops in total and able to commit 1500 officers now to quality of life crimes. The assaults on a daily basis that can make life difficult for the average New Yorker. Now we will be devoting special initiative of this administration announced shortly before the budget, 1500 unit of cops to focus on quality of life crimes.

So we have both been reducing major crime to record levels. And now we'll be addressing quality of life crimes with that same success and effort. But public safety isn't it alone. To build a city where families want to raise their their children, you have to have affordable housing. You have to have job opportunities and you have to have educational opportunity. And this budget delivers on all of those. The promise of New York to be a place where working class families can come enjoy quality of life, enjoy affordable housing and get their kids educated so no child is left behind. This budget is all of those things.

Creating more than 130,000 units of affordable housing in this administration in barely three years. Which dwarfs the number of units created during the prior two administrations over 20 years. Job [inaudible 00:12:23] record 4.86 million New Yorkers employed today. A city record. And finally on education, universal after school program. My God, how great that is for our kids. And for two parent working families so their kids will continue their education. They get arts education, music education, additional class education. We're paying and committing and baselining the funding needed for child care seats and child education seats in Head Start and other programs. The mayor has said we're going to cover those if the feds don't.

Brian Lehrer: But let me jump in. You put a lot on the table there. Let me follow up on a few of them. Starting with after school and listeners. We also can take a few phone calls and text questions for First Deputy Mayor Randy Mastro on all these things in the mayor's new budget and other things that may be relevant. 212-433, WNYC. 212-433-9692. And of course, the way this works is this is a budget proposal from the mayor. It now goes to city council and a season of negotiations begins before the new fiscal year on July 1st. On after school, 5,000 new slots next year, 20,000 over the next several years in a system of almost a million kids. But you say universal. How close to universal after school does that actually get the city?

Randy Mastro: Okay, glad you asked, Brian, because some pieces are left out. It's Universal K through 5. Over the coming years, it's adding 20,000 new positions on top of the positions that exist now. So we will have 185,000 seats. And then after those three years, with that increase and the budget baselined, very important. Baseline means permanent, not changing year to year. Okay. Then on the third year, read that budget. It says it. Then we will assess how many more seats are needed and continue to fund until a Universal K through 5.

I think that's a wonderful, wonderful thing. And to me, it's going to be historic, a legacy achievement to have brought that to pass. So now kids have universal pre K. Their education has been improved during the school day, and now they'll have universal after school K through 5.

Brian Lehrer: You talk about this baseline budgeting, making things permanent. The mayor did kind of a call and response with some in the audience, as you know, yesterday over what we're reporting as guaranteed future funding for CUNY, also cultural institutions and libraries, as well as what you were just describing on after school. The mayor called it baseline funding. And the call and response went like this.

Mayor Adams: When I say baseline, you say forever. Baseline.

Audience: Forever.

Mayor Adams: Baseline.

Audience: Forever.

Brian Lehrer: Forever. But Liz's story on Gothamist quotes James Parrott, local economist and budget expert, you know him, he said , "There is no such guarantee. Budgets can be edited every year," he said, "as they are every year." So what is baseline? And is the mayor overstating it?

Randy Mastro: No, but I love the pessimists and the skeptics and they exist for a reason. But the fact of the matter is, they know as well as I do, because I've done a lot of budgets over the years, Brian, going back over 30 years, back to the 1990s, okay? When something is baseline, that means it automatically carries over year to year and stays in the base budget for the city.

Now, that doesn't mean there can't be at some future point, some mayor or council with the audacity to question that, all right? But it means that automatically that's in the baseline of what the city intends to fund, and it carries over year to year. And in my own experience, absent some catastrophic circumstance for the city, that baseline never changes. And that's the truth. That's the facts.

Brian Lehrer: Before we go to some phone calls, another issue, not taking into account possible shortfalls coming from a possible recession. The economy did contract last quarter. One more like that, and it's officially a recession. Or from the impact of tariffs, responsible or irresponsible?

Randy Mastro: So actually, last quarter in New York City was a strong quarter. And to be clear, we have prepared for contingencies. We've taken every contingency into account. We have 8.5 billion in reserves. We're maintaining that it's a record level of reserves. We have 2 billion in a rainy day fund. Maintained that that's a record level of rainy day fund. And as I already said, we have planned ahead for certain of these storm clouds in Washington.

But I'll say this, some people see the glass half empty. The pessimists, some cases the political opportunists. They say the sky is falling, for whatever reasons. They want to harp on the negative, but we see the glass as half full. We're betting on New York. We're betting on the resiliency of New York because we have been so resilient and we believe we can deal with whatever comes our way because we've already done it with two crises and gotten us to this point of such stability where we reduce the overall spending levels, particularly by billions on the migrant crisis and the revenue up hugely last year.

And we were able to carry over hundreds of millions of dollars to fund this budget. So, truth be told, we think this is, if anything, conservative. Last year there was 8% growth. We conservatively now estimate for this year, 1%. But the actual expense budget, by the time we're done with fiscal year '25 will be over 119 billion. This expense budget for fiscal year '26 is only 115.1 billion. So it's actually lower than what we will spend over the course of fiscal year '25

Brian Lehrer: Child care question from Francine in Brooklyn. You're on WNYC with First Deputy Mayor Randy Mastro, Francine. Hi.

Francine: Yeah, hi. Can you hear me?

Brian Lehrer: Yes.

Randy Mastro: Yes.

Francine: Okay. So it has been reported that there are 62,000 families that could lose vouchers that help them pay for child care. This is something that ACS flagged and the mayor did not let people know about this until very late in the game. And advocates have been able to get the state to propose and the proposed budget, $250 million that would come to New York City for a voucher assistance if the city matches that. Does the city have money for that in the budget? 250 million.

Brian Lehrer: This is a big dispute between the city and the state now, isn't it?

Randy Mastro: Yes. And with all due respect, the premise of the question is false. This is a state program implemented out of the state and out of the governor's office. And while we have great respect for Governor Hochul, this is a program the state created, these child care vouchers. It's a program the state has always funded 100%. There's never been any component of it that involved the city having to pay a dime for the program. The state loved the program and touted the program. And the only people enrolled in the program are people who are qualified under the state standard and state law. And it happens to be more people than the state planned on.

This happens in public assistance programs all the time. And you modify your budget to pay for your obligations. A state child care voucher program, cities never paid a dime for it, never been asked to pay a dime for it. So now the rules are changing in the middle of the game. And we warned Albany, we warned state agencies that the enrollment rate was going up in the program. That's because people were qualified for the program. We started warning them in the latter part of last year. And this is not unexpected at all, that when you have public assistance programs, you do budget modifications during the year and you fund your programs just like we fund our public assistance program.

Brian Lehrer: And in fact, you know, I watched the mayor's budget address yesterday. How could I not watch when he was speaking from the auditorium of both of our high school alma mater. But I know that he brought this up specifically what you're saying about it being a state program. And if the demand expands, it's up to the state to meet it. Here's the way the mayor put it.

Mayor Adams: They always fund it. They take $300 million away. Like where's the outrage? Where's the noise?

Brian Lehrer: I guess he was asking journalists, where's the outrage? Where's the noise compared to other things they focus on, yes?

Randy Mastro: Brian, he was asking other local officials, where's the noise to protect New York City? Now, ma'am, let's be crystal clear. This mayor has made an unprecedented commitment to childcare and early childhood development. We've anticipated some of the cuts to come, and this mayor is committed on Head Start and other early childhood development projects that will make up the gap. And he has funded and baselined over 190 million for early childhood development.

And this issue, we're going to continue to press Albany to honor its obligations under state law to pay for 100% of a state program. But, ma'am, we care. Government is about having a head and a heart. We care. So you can appreciate that we're going to do everything we can to minimize the consequences of the state retraining on its own program, but we're doin everything we can to make the state honor its obligations under that program, which is to pay 100%.

Brian Lehrer: How about filling some of the holes from federal cuts already announced? We had the city health commissioner on the show on Tuesday, Dr. Michelle Morse, discussing some of the impacts in that area, including the Trump administration's ban on using the term health disparities and a related cut to a program that measures those. Here's Commissioner Morse.

Dr. Michelle Morse: One example that is particularly salient for us in New York City, where we have one of the most egregious racial inequities in maternal mortality between Black New York women and other New Yorkers. The program that monitors the causes of maternal mortality, it's called prams, was removed from the CDC website and is no longer available.

Brian Lehrer: So does the mayor's proposed budget make up that funding or other things that the city would have to spend just to keep the status quo after Trump funding cuts to New York?

Randy Mastro: There are more resources being devoted to our health and mental health department, particularly in the mental health area, enormous amounts, but more to inspections and the like. We are planning ahead. On the other hand, we want to hold the Trump administration to its obligations. And therefore, when the Trump administration doesn't honor them, we've gone to court, Brian.

When Elon Musk tried to claw back 80 million in asylum seeker funding and reversed a wire transfer, we went to court. And we're in court to get that money back now. And to the extent there's more at risk, we will go to court. This administration is going to stand up for what is right for New York. We are going to protect New Yorkers. We're going to protect New Yorkers from things that go wrong in Washington and in Albany. But we are also going to use our good offices. As I said before, we respect Governor Hochul. We've always worked well with Governor Hochul's office and we hope to continue to work well with her.

And I don't think there's an elected official in New York, a mayor of a big city in this country who's better positioned than Eric Adams to communicate effectively for what's right for New York with the current federal administration. And when that administration doesn't do right by us, we will call it out and go to court.

Brian Lehrer: And interesting that you put it in comparative terms like that. No one better than Eric Adams. Listener writes in a text Adams says he had to make huge cuts last year and now we have record reserves and a rainy day fund. Oh, what a coincidence. It's an election year, so I guess we'll let-- and I know of course you talked about the actual pressures on the budget in recent years from the number of migrants and from COVID. But we will leave that for the campaign and let voters make their decisions about what the mayor is doing and why as the debates on that go on.

I want to end by taking a couple of calls that are coming in for you on things that are sort of budget adjacent that you've been involved with, as I understand it. Here's Jennifer in Little Italy. You're on WNYC with first Deputy Mayor Randy Mastro. You wanted to say-- were you trying to get something in, Deputy mayor?

Randy Mastro: You got to let me respond briefly to that. You know, sometimes Brian, good news is just good news and this budget is good news. So take it for what it is, an investment in the future of New York and it's good news for New Yorkers.

Brian Lehrer: Jennifer in Little Italy, you're on the air.

Jennifer Romine: Good morning. My name is Jennifer Romine. I live in Little Italy in Manhattan.

Randy Mastro: Love Little Italy.

Jennifer Romine: I live on this-- oh well, it's a lot happening here. It's very interesting. I have a question. It's really quite simple. We're living in times where facts are not-- even The New York Times is not as committed as it should be to reporting facts. I live in a building of 152 units of affordable housing, low to moderate income housing. Little Italy Restoration Association. My building is called [unintelligible 00:28:28]

It was for-- since the building was built. It was an immigrant led initiative and my question for you, Mr. Mastro, is what is your level of commitment to looking at the facts surrounding the history of the Elizabeth Street Garden? Do you know that it is not in Soho? Do you know that there were 25 units in my building of affordable housing? Do you know that the people who rely on that open space are low income seniors and children?

Brian Lehrer: Jennifer, I'm going to leave it there for time and for a little background for listeners who don't know that issue, very contentious. What to do with the Elizabeth Street Garden. There was a proposal to use the space for I guess low income senior housing I think is an accurate way to put it. But I think at your urging, Deputy Mayor, that program has been paused. Correct me if I'm wrong.

Randy Mastro: Brian, I ask that before an irreversible eviction occurred on my first week on the job that I haven't the opportunity to review the situation. I think that's what was the prudent thing to do. I think that's what any responsible new first deputy mayor would do. Ma'am, can I ask you, are you saying you support the Elizabeth Street Garden staying as a--

Jennifer Romine: I support affordable housing. I support the use of the thousands of other units available. I do not support the destruction of open green space that serves low income people that the immigrants of my neighborhood fought-- so I just want to know if you're committed to looking at the facts because I'm going to [inaudible 00:30:23] of facts.

Randy Mastro: Ma'am, I am looking at the facts. I am the grandchild of immigrants. I appreciate the importance of affordable housing. This administration is committed to affordable housing and nothing is going to happen in that neighborhood that doesn't result in the creation of even more affordable housing than exists there now.

Brian Lehrer: While preserving the open space that she's also obviously concerned about?

Randy Mastro: Sorry, I didn't hear your question, Brian, but there's been no decision made to alter the course at Elizabeth Street Garden at this point. But I think that it is important to listen to communities. And ma'am, with all due respect, there are many people who consider that a beloved place in their neighborhood. So I think it's prudent for me to review the situation. And yes, I have been carefully reviewing the situation. I have visited, I knew it before I came to office. But this administration is committed to affordable housing. We're producing it in record numbers unlike any administration has ever produced affordable housing and will happen there.

Brian Lehrer: The Elizabeth Garden issue, Elizabeth Street Garden issue still in play. Let me get one more call in for you. Tommy. On the Lower east side, you're on WNYC on congestion pricing. Right, Tommy?

Randy Mastro: I can't talk about that my friend. I'm recused from being involved in that decision other than to say that this administration, I did not participate in the decision, has joined the state's lawsuit against the Trump administration on the side of the state and on the side of congestion pricing. But I personally am recused from anything involving congestion pricing.

Brian Lehrer: But you had previously-- the caller wanted to know how you could be on both sides. You had previously represented New Jersey in a lawsuit against congestion pricing. Do I have that right?

Randy Mastro: I represented the state of New Jersey and I'm not on both sides because I'm not on any side. I'm recused and not involved in any decision making in city government about congestion pricing at all.

Brian Lehrer: And there we will leave it with First Deputy Mayor Randy Mastro. Thank you for answering so many of my questions and listener questions. We'll see how the budget proposal sits with City Council, how it sits with other mayoral hopefuls. Thank you very much for coming on today representing the Mayor.

Randy Mastro: Brian, thank you. Pleasure to be with you as always and to take your audience's questions.

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