1 00:00:02,520 --> 00:00:07,000 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:07,800 --> 00:00:11,240 Speaker 2: The city's relationship with its wealthiest residents' most profitable corporations 3 00:00:11,520 --> 00:00:13,280 Speaker 2: also has to change so that we can bring this 4 00:00:13,360 --> 00:00:16,720 Speaker 2: city back to firm financial footing. You know, as the mayor, 5 00:00:17,079 --> 00:00:19,919 Speaker 2: I am legally required to balance the budget of this 6 00:00:20,040 --> 00:00:22,160 Speaker 2: fiscal year and the next. That is something we are 7 00:00:22,160 --> 00:00:24,759 Speaker 2: fully going to do. In order to do so, we 8 00:00:24,840 --> 00:00:26,360 Speaker 2: have to deal with these structural problems. 9 00:00:27,160 --> 00:00:29,600 Speaker 3: That was New York City Marizona and mom Donnie speaking 10 00:00:29,640 --> 00:00:32,199 Speaker 3: with Bloomberg just a few weeks ago, warning of the 11 00:00:32,240 --> 00:00:35,800 Speaker 3: city's twelve point six billion dollar budget gap over the 12 00:00:35,840 --> 00:00:38,640 Speaker 3: next two years. Mark Levin he is New York City Control, 13 00:00:38,680 --> 00:00:41,640 Speaker 3: where he joins us now on set to discuss market's. 14 00:00:41,640 --> 00:00:43,199 Speaker 1: Great to see you, Great to see both of you. 15 00:00:43,240 --> 00:00:43,559 Speaker 1: Thank you. 16 00:00:43,920 --> 00:00:46,680 Speaker 3: So let's start exactly there, the budget gap. I mean, 17 00:00:46,720 --> 00:00:49,760 Speaker 3: when you take a look at how that possibly could 18 00:00:49,800 --> 00:00:52,319 Speaker 3: be fixed, is there any hope of fixing that from 19 00:00:52,360 --> 00:00:54,720 Speaker 3: the revenue side or is it going to be cutting costs? 20 00:00:54,800 --> 00:00:57,560 Speaker 1: You know, our revenues are pretty good right now, partly 21 00:00:57,600 --> 00:01:00,120 Speaker 1: because the finance industry is doing so well, but more 22 00:01:00,240 --> 00:01:02,640 Speaker 1: than that, commercial real estate's doing the best it's been 23 00:01:02,720 --> 00:01:05,160 Speaker 1: for twenty years. The problem is that we have some 24 00:01:05,240 --> 00:01:08,520 Speaker 1: expenses that are growing very fast that have not been 25 00:01:08,520 --> 00:01:11,560 Speaker 1: accounted for in the budget. And when we took a 26 00:01:11,560 --> 00:01:14,120 Speaker 1: look at the books, what we've seen is a very 27 00:01:14,200 --> 00:01:16,440 Speaker 1: big gap, which is something we haven't seen in New 28 00:01:16,480 --> 00:01:19,759 Speaker 1: York City since at this scale, since the financial crisis. 29 00:01:19,840 --> 00:01:21,080 Speaker 1: How are we going to solve it? It's going to 30 00:01:21,160 --> 00:01:23,880 Speaker 1: require help on many fronts. We're going to definitely need 31 00:01:23,920 --> 00:01:26,800 Speaker 1: to find efficiencies within the city government. We're going to 32 00:01:26,840 --> 00:01:28,920 Speaker 1: need some help from Albany. I hope I'll be going 33 00:01:28,959 --> 00:01:31,600 Speaker 1: there Wednesday to plead that case. I think we can 34 00:01:31,600 --> 00:01:34,160 Speaker 1: get through this, But this is beyond what we have 35 00:01:34,240 --> 00:01:37,679 Speaker 1: seen in a budget cycle in probably fifteen years. 36 00:01:37,800 --> 00:01:39,679 Speaker 3: Let's talk about what you're seeing when it comes to 37 00:01:39,760 --> 00:01:42,399 Speaker 3: cost because taking a look at some of them, it 38 00:01:42,440 --> 00:01:45,880 Speaker 3: seems like there's sources that are constantly under budget, and 39 00:01:45,920 --> 00:01:48,080 Speaker 3: if you want to call it that, over time for 40 00:01:48,320 --> 00:01:51,640 Speaker 3: uniform officers for example, comes to mind. But where are 41 00:01:51,680 --> 00:01:53,800 Speaker 3: you seeing the biggest growth when it comes to that 42 00:01:53,920 --> 00:01:54,720 Speaker 3: side of the ledger? 43 00:01:55,240 --> 00:01:57,720 Speaker 1: Yeah, so that we have an equivalent of a Section 44 00:01:57,800 --> 00:02:00,560 Speaker 1: eight housing voucher in New York City. It's got a 45 00:02:00,600 --> 00:02:03,080 Speaker 1: weird acronym. It's called City Steps. We're one of the 46 00:02:03,080 --> 00:02:05,080 Speaker 1: only places in the country that has a local version 47 00:02:05,120 --> 00:02:08,120 Speaker 1: of this great program. Guys, is growing by four percent 48 00:02:08,120 --> 00:02:12,160 Speaker 1: a month, and I think your audience understands exponentials, and 49 00:02:12,240 --> 00:02:15,680 Speaker 1: so it's doubling every eighteen months, and we projected it'll 50 00:02:15,720 --> 00:02:17,440 Speaker 1: be over three billion dollars next year. 51 00:02:17,800 --> 00:02:20,880 Speaker 4: Butiam, I'm back up. Section eight to me means something 52 00:02:21,560 --> 00:02:23,720 Speaker 4: different than I'm sure what you're talking about, because I 53 00:02:23,760 --> 00:02:26,560 Speaker 4: think of mash and corporal Clinger. Right, you're talking about 54 00:02:26,560 --> 00:02:29,320 Speaker 4: housing value, money that we pay people to afford to 55 00:02:29,320 --> 00:02:30,000 Speaker 4: be able to live here. 56 00:02:30,080 --> 00:02:32,240 Speaker 1: Yeah, this is a voucher you can use to rent 57 00:02:32,280 --> 00:02:34,960 Speaker 1: housing in a private building, right, so not public housing. 58 00:02:35,200 --> 00:02:37,800 Speaker 1: You can go to a home you can find throughout 59 00:02:37,840 --> 00:02:41,040 Speaker 1: New York City. Section eights a limited supply from the 60 00:02:41,040 --> 00:02:45,480 Speaker 1: federal government. We have a local version. Great program. It's 61 00:02:45,520 --> 00:02:47,000 Speaker 1: growing out an astounding pace. 62 00:02:47,120 --> 00:02:49,079 Speaker 4: What we just give we give out more and more. 63 00:02:49,280 --> 00:02:53,200 Speaker 1: You're saying, yes, we've expanded the qualifications. It's designed for 64 00:02:53,200 --> 00:02:55,800 Speaker 1: people who are in homeless shelters or in danger of homelessness, 65 00:02:55,960 --> 00:02:57,320 Speaker 1: to help them get out of the shelter. 66 00:02:57,919 --> 00:02:59,320 Speaker 4: Who wants them to get out of New York City. 67 00:02:59,360 --> 00:02:59,920 Speaker 1: I mean, why have. 68 00:03:01,440 --> 00:03:04,120 Speaker 4: In the most expensive city in America? Why are we 69 00:03:04,160 --> 00:03:06,360 Speaker 4: putting people up here? Why not move them to places 70 00:03:06,360 --> 00:03:07,280 Speaker 4: that are cheaper to live. 71 00:03:07,600 --> 00:03:09,600 Speaker 1: Well, we want them to be New Yorkers. This is 72 00:03:09,800 --> 00:03:11,440 Speaker 1: part of our city, in our community, and they have 73 00:03:11,480 --> 00:03:13,600 Speaker 1: family ties here and more. And we can do this, 74 00:03:14,240 --> 00:03:17,120 Speaker 1: but we're not budgeting for it, and it's blown a 75 00:03:17,200 --> 00:03:20,320 Speaker 1: hole in our budget. That is billions of dollars. Raining 76 00:03:20,440 --> 00:03:23,120 Speaker 1: in or updating programs like that is going to be 77 00:03:23,200 --> 00:03:24,360 Speaker 1: key to getting out of this hole. 78 00:03:24,680 --> 00:03:27,160 Speaker 3: Well, you mentioned, for example, the performance of Wall Street. 79 00:03:27,200 --> 00:03:29,520 Speaker 3: You think about how well Wall Street did, how well 80 00:03:29,560 --> 00:03:32,680 Speaker 3: the stock market did over the past year. Would you 81 00:03:32,840 --> 00:03:36,080 Speaker 3: expect that to shrink the deficit when we get those 82 00:03:36,160 --> 00:03:38,480 Speaker 3: updated numbers. Are some of the costs that you're talking 83 00:03:38,520 --> 00:03:41,480 Speaker 3: about that are growing exponentially going to just have that 84 00:03:41,520 --> 00:03:42,200 Speaker 3: come out in the wall? 85 00:03:42,280 --> 00:03:44,560 Speaker 1: Yeah, I think it was. New York City's economy on 86 00:03:44,600 --> 00:03:48,040 Speaker 1: the whole is doing very well. Also, real estate taxes 87 00:03:48,240 --> 00:03:51,360 Speaker 1: are producing more revenue than we expected, sales tax again, 88 00:03:51,520 --> 00:03:55,880 Speaker 1: personal income tax, and we do expect to further revise 89 00:03:56,040 --> 00:03:59,920 Speaker 1: those numbers because the bonus season we had. One Wall 90 00:04:00,000 --> 00:04:02,040 Speaker 1: Street person told me it's the second best they've seen 91 00:04:02,080 --> 00:04:04,800 Speaker 1: in their entire career this year for December of twenty 92 00:04:04,840 --> 00:04:07,600 Speaker 1: twenty five. But even factoring that in, we're going to 93 00:04:07,600 --> 00:04:10,320 Speaker 1: be left with a whole And so while we want 94 00:04:10,360 --> 00:04:12,040 Speaker 1: to keep the economy going, we want to grow New 95 00:04:12,120 --> 00:04:14,960 Speaker 1: York City's economy. That is the ultimate solution to our 96 00:04:15,000 --> 00:04:17,040 Speaker 1: budget problems, and I'm going to be a voice for 97 00:04:17,040 --> 00:04:21,000 Speaker 1: that as comptroller. We have a complete freeze on hiring 98 00:04:21,000 --> 00:04:22,720 Speaker 1: in New York and the private sector in New York. 99 00:04:23,200 --> 00:04:25,880 Speaker 1: In New York City, with the exception of home healthcare AIDS, 100 00:04:26,240 --> 00:04:28,520 Speaker 1: it's all come to a screeching halt over the past year. 101 00:04:28,600 --> 00:04:30,480 Speaker 1: We've got to get that going as well. So I'm 102 00:04:30,520 --> 00:04:33,640 Speaker 1: going to be a voice for getting jobs growing again. 103 00:04:33,920 --> 00:04:36,760 Speaker 1: Because it's going to drive tax revenue. That won't be enough. 104 00:04:36,760 --> 00:04:38,560 Speaker 1: We're also going to have to have some efficiencies in 105 00:04:38,600 --> 00:04:40,239 Speaker 1: government and a little helpful almoney. 106 00:04:40,640 --> 00:04:43,560 Speaker 3: There is the line of thinking out there that mayor 107 00:04:43,640 --> 00:04:46,560 Speaker 3: Mom Donnie might be exaggering the scope of the budget 108 00:04:46,560 --> 00:04:50,360 Speaker 3: problems to really make his case for tax hike, which 109 00:04:50,440 --> 00:04:53,240 Speaker 3: is popular which his base of supporters, and then very 110 00:04:53,320 --> 00:04:56,480 Speaker 3: unpopular with people outside his base. I mean, what do 111 00:04:56,520 --> 00:04:57,600 Speaker 3: you make of some of. 112 00:04:57,560 --> 00:05:01,159 Speaker 1: That we have a real gap, and I'd rather have 113 00:05:01,200 --> 00:05:03,640 Speaker 1: a mayor who embraces it so we can fix it 114 00:05:04,000 --> 00:05:05,640 Speaker 1: then a mayor who just tries to keep kicking the 115 00:05:05,680 --> 00:05:10,320 Speaker 1: can down the road. So I think this is good news. Look, 116 00:05:11,520 --> 00:05:13,240 Speaker 1: I think that we've got to get our fiscal house 117 00:05:13,279 --> 00:05:15,920 Speaker 1: in order. I do think we need more help from Albany. 118 00:05:16,720 --> 00:05:18,680 Speaker 1: Everything needs to be on the table. I would think 119 00:05:18,760 --> 00:05:23,040 Speaker 1: potentially including tax increases, but you hear me talking about 120 00:05:23,040 --> 00:05:25,760 Speaker 1: some other priorities. This is what I'm pushing for. I 121 00:05:25,760 --> 00:05:28,400 Speaker 1: think this is solvable. This is I don't use the 122 00:05:28,400 --> 00:05:31,560 Speaker 1: word crisis. I think this is a challenge that we 123 00:05:31,600 --> 00:05:32,960 Speaker 1: can solve with smart policy. 124 00:05:33,200 --> 00:05:36,480 Speaker 4: I just wonder, you know, even if you agree that 125 00:05:37,760 --> 00:05:41,640 Speaker 4: you know, pre K should be free and in a 126 00:05:41,680 --> 00:05:44,480 Speaker 4: good wealthy society, it probably should be. Even if you 127 00:05:44,520 --> 00:05:48,320 Speaker 4: agree that local transportation should be free, which is I 128 00:05:48,320 --> 00:05:50,040 Speaker 4: guess a nice to have, even if you want to 129 00:05:50,240 --> 00:05:53,159 Speaker 4: continue to pass out and ever growing at four percent 130 00:05:53,200 --> 00:05:56,520 Speaker 4: a month amount of housing vouchers for people to live here, 131 00:05:57,240 --> 00:06:00,600 Speaker 4: isn't it when you're in a budget deficit like this time, 132 00:06:00,640 --> 00:06:02,600 Speaker 4: to stop just giving away so much money. 133 00:06:03,279 --> 00:06:05,160 Speaker 1: Look, we are definitely going to need a little more 134 00:06:05,160 --> 00:06:07,240 Speaker 1: discipline in New York City's budget. You've heard me talk 135 00:06:07,320 --> 00:06:10,960 Speaker 1: about one of the programs, and there's many others. That 136 00:06:11,000 --> 00:06:13,400 Speaker 1: doesn't mean we can't do bold things. And in the 137 00:06:13,440 --> 00:06:16,320 Speaker 1: case of childcare, I really do think New York City 138 00:06:16,320 --> 00:06:18,840 Speaker 1: needs I think every place should have it. The Governor 139 00:06:18,880 --> 00:06:20,440 Speaker 1: put about a billion on the table to help us 140 00:06:20,440 --> 00:06:22,800 Speaker 1: start on that, and we can begin to phase in 141 00:06:22,880 --> 00:06:24,680 Speaker 1: a program like that. It's going to take several years 142 00:06:24,880 --> 00:06:27,720 Speaker 1: just building it out logistically, but this is going to 143 00:06:27,760 --> 00:06:30,799 Speaker 1: be a tougher budget, and I think we can confront 144 00:06:30,839 --> 00:06:34,560 Speaker 1: that still try to be creative on addressing affordability and more. Look, 145 00:06:34,600 --> 00:06:35,920 Speaker 1: some of what we need to do is not about 146 00:06:35,920 --> 00:06:38,400 Speaker 1: the budget. We got to build more housing. We need 147 00:06:38,800 --> 00:06:41,840 Speaker 1: a half million more units in New York City. That's 148 00:06:41,880 --> 00:06:44,920 Speaker 1: going to require, in part, unleashing private sector development as well. 149 00:06:45,720 --> 00:06:47,880 Speaker 1: It's not only about what the public sector can do. 150 00:06:47,960 --> 00:06:52,000 Speaker 4: We need a partnership and we also need probably better 151 00:06:52,200 --> 00:06:54,839 Speaker 4: transportation from outside in so that we don't build all 152 00:06:54,880 --> 00:06:57,760 Speaker 4: that housing on this tiny island right there is just 153 00:06:58,720 --> 00:07:01,680 Speaker 4: and has been a core case about building this new 154 00:07:01,680 --> 00:07:06,000 Speaker 4: tunnel project. Have you thought about just naming Penn Station 155 00:07:06,120 --> 00:07:08,360 Speaker 4: or the Empire State Building after President Trump and trying 156 00:07:08,400 --> 00:07:09,039 Speaker 4: to get money like that. 157 00:07:09,840 --> 00:07:12,800 Speaker 1: I'm gonna be honest, I would take that trade because 158 00:07:12,800 --> 00:07:16,320 Speaker 1: we desperately need to invest in this infrastructure, and we 159 00:07:16,320 --> 00:07:19,840 Speaker 1: could also rename it after this guy's out of office, 160 00:07:20,920 --> 00:07:25,559 Speaker 1: whatever it takes. We need regional transportation infrastructure, and every 161 00:07:25,600 --> 00:07:30,320 Speaker 1: single commuter train stop should have residential density around it. 162 00:07:30,640 --> 00:07:34,200 Speaker 1: That would also help alleviate the housing affordability crisis within 163 00:07:34,280 --> 00:07:35,480 Speaker 1: the five brols of New York City.