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New York And The Increase In Operating Costs

Between the new mayor and new Council Speaker, costs will rise materially and operating a major asset will be much more regulated

By Joel Ross | Updated on January 12, 2014

In case you missed the last week of DeBlasio press conferences, the first had a group made up of his main cabinet members. There was not a single businessman or real estate professional in the group. There was nobody with any senior management experience at all, including the mayor. Not a single one has ever run a complex group. The largest management task DeBlasio ever had  was managing the ombudsman office of 40 people with no real role in government. One of the cabinet members bragged of his union background. They all are openly left wing.

This then got followed by another news conference where the mayor had the leader of every major city union on stage with him. He used this press conference to claim he was demanding along with the unions, that personal income taxes must be raised by $560 million a year for five years-that is $2.65 billion of higher taxes. Then there is the issue of retroactive pay for the unions standing on stage with him. That totals another $2.5 billion. Without these added costs the budget is already $2.5 billion or so in deficit.

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