Testimony Before the New York City Charter Revision Commission

Edmund J. McMahon testified in a hearing titled Fiscal Responsibility Forum and Public Input Session New York Law School.

Watch the full testimony here.

Good evening and thank you for this opportunity to provide input on ways of promoting fiscal responsibility in city government via revision of the City Charter. 

From an historical standpoint, this hearing is well-timed. New York is approaching the 50^th anniversary of the worst fiscal crisis in its modern history, which did so much to shape the budget process we are discussing today. 

The key budget process provisions of the 1989 charter update, including safeguards originated in the state Financial Emergency Act of 1975, were adopted to ensure that nothing like that crisis could ever happen again.  These provisions have paid enduring dividends—but in light of subsequent experience, updates clearly are in order.

Many good reform ideas already have been presented at this hearing. In particular, I’d like to express my agreement with the recommendations for mandated rainy day fund deposits accompanied by withdrawal and balance rules, improved legislative financial impact statements and financial plan estimates, and a cap on city debt service.

Click here to read the full testimony.

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E.J. McMahon is a senior fellow at the Empire Center for Public Policy and a Manhattan Institute ­adjunct fellow. Follow him on Twitter here.