The Mayor Eric Adams’ administration has projected a $1.7 billion reduction in spending on migrants through June. The total cost for caring for migrants is now estimated at $10.5 billion, down from $12.3 billion. The decrease in costs is attributed to policies like capping migrant stays at 30 or 60 days, resulting in a decrease in the shelter population from 69,000 to under 65,000.
Budget-watchers have disputed whether the cost savings are due to the administration’s policies or if the city has overestimated the costs of caring for migrants. Critics, including City Comptroller Brad Lander, have raised concerns about the accuracy of the projections.
The director of the Office of Asylum Seeker Operations, Molly Schaeffer, highlighted the projected cost savings as a success, pointing to the $1.7 billion reduction. However, questions remain about the long-term sustainability of these cost-saving measures.
The administration is planning to further reduce spending on migrants by an additional 10%, or $600 million, and is re-evaluating contracts with service providers to cut costs. The Independent Budget Office released projections that were significantly lower than the mayor’s estimates, indicating that there may be uncertainties in the data.
Critics have called for a competitive bidding process for service contracts to ensure cost-effectiveness. Mayor Adams has called for more financial support from state and federal governments to address the ongoing influx of migrants into the city. The administration is committed to reducing costs while maintaining services for migrants in need.
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