State Comptroller Thomas DiNapoli is giving a cautious thumbs up to Mayor de Blasio's preliminary budget.
Thomas DiNapoli calls the $74 billion plan a "strong starting point" for the mayor.
He also approves of the plan's use of higher than expected tax revenues to reduce budget gaps and replenish the city's reserves.
However, DiNapoli is concerned about the effect of new labor contracts on the city's overall financial picture, since it's not clear how much they will eventually cost.
Other issues include a potential shortfall in the sale of new taxi medallions, and questions about whether city hospitals will need more funding.
In response to the report, the mayor said his administration is constantly looking for ways to save money and make government more efficient.