October 9, 2020
NEW YORK—Mayor Bill de Blasio today announced that the City has reached an arbitration agreement with the United Federation of Teachers (UFT) that will result in $450 million in savings in fiscal year 2021. The agreement includes partial payment of lump sum payments which were scheduled to be paid this month, and a commitment the City will not layoff teachers through at least June 30, 2021. The Adopted Budget announced in June included $1 billion in labor savings for FY21 and these savings will account for nearly half of that commitment. The City still needs a minimum of $5 billion in federal or state relief in order to avoid drastic action such as layoffs for FY22.
"The City faces the gravest fiscal crisis since 9/11, but we will build on our record of strong financial management by making the tough decisions and sacrifices we need to keep the City running," said Mayor Bill de Blasio. "This agreement allows us to avoid laying off the teachers who've done so much for New York City's schools and students. But make no mistake, the need for the Federal and State governments to step up and provide us with aid is as pressing as ever."
The agreement includes:
Partial payment: Half of scheduled payment (approx. $450 million) to be paid in October 2020, remaining half to be paid in July 2021.
Commitment on layoffs: No layoffs of teachers through June 30, 2021. If the City receives State and Federal assistance of $5 billion or more, the no-layoff pledge is extended to June 30, 2022.
Facing an economic downturn driven by COVID-19, the de Blasio Administration has built on its record of strong fiscal management to ensure a robust recovery for New York City: