November 15, 2022
Amid Fiscal Challenges, Adams Administration Continues to Balance Need for Fiscal Discipline with Upstream Investments to Make City Safer, Cleaner, and More Resilient
NEW YORK – New York City Mayor Eric Adams in the present day launched the City of New York’s November Financial Plan Update for Fiscal Year 2023 (FY23). The FY23 price range is $104 billion and stays balanced.
“Fiscal discipline has been, and continues to be, a hallmark of my administration. The city faces significant economic headwinds that pose real threats to our fiscal stability, including growing pension contributions, expiring labor contracts, and rising health care expenses — and we are taking decisive actions in the administration’s first November Financial Plan to meet those challenges,” mentioned Mayor Adams. “Thanks to a successful Program to Eliminate the Gap, we have achieved significant savings without service reductions or layoffs. We are also investing in new needs that will address our housing crisis, make our streets cleaner, combat climate change, and much more.”
Since day certainly one of his administration, Mayor Adams has clearly outlined the fiscal challenges dealing with the town. Today these embrace the affect of elevated pension prices attributable to stock-market losses, new wants associated to help for asylum seekers, the menace to the price range of impending healthcare and labor price will increase, and financial stresses like excessive vitality costs and elevated inflation. In response to those challenges, the mayor has taken sturdy and swift actions within the November Financial Plan to guard the town’s long-term fiscal stability and the power to ship high quality packages and companies with out interruption by attaining substantial financial savings by way of an aggressive Program to Eliminate the Gap (PEG), controlling new spending, and sustaining a document stage of reserves. Along the way in which he’s making New York City a safer and cleaner place to reside, work, and go to.
The PEG was a hit, attaining greater than $2.5 billion in hole closing financial savings with out service reductions or layoffs over this fiscal yr and the subsequent – greater than $900 million in FY23 and greater than $1.6 billion in Fiscal Year 2024 (FY24). Additionally, the administration achieved $1.5 billion of PEG financial savings in each Fiscal Years 2025 (FY25) and 2026 (FY26). As all the time, companies should proceed to search out extra environment friendly and efficient methods to serve New Yorkers.
As a results of the PEG, the FY24 price range hole was diminished by greater than $1 billion and is now a manageable $2.9 billion. Gaps are $4.6 billion in FY25 and $5.9 billion in FY26 due to the FY22 stock-market losses.
Budget reserves stay at a document stage $8.3 billion, essentially the most put aside by any administration in metropolis historical past. There is $1.9 billion within the Rainy-Day Fund, $4.5 billion within the Retiree Health Benefits Trust, and $1.6 billion within the General Reserve, in addition to $250 million within the Capital Stabilization Reserve.
Budget progress in FY23 since Adoption in July 2022 is the results of federal grant funds, together with a projected $1 billion to fund the on-going price of offering shelters and different companies to the brand new asylum seekers in New York.
New company spending of $211 million in FY23 and $138 million in FY24 is greater than offset by PEG financial savings. As a outcome, the November Financial Plan exhibits a surplus of $705 million in FY23, which is used to decrease the FY24 price range hole.
New FY23 investments honor the mayor’s dedication to creating New York City cleaner, greener, and safer, and embrace:
- $19 million in further help for the medallion reduction program to assist struggling taxi drivers.
- $14.5 million to launch “Get Stuff Clean,” an initiative that may create a cleaner metropolis by way of a significant improve to cleanliness protocols throughout the 5 boroughs. This contains funding to wash over 1,000 ‘No Man’s Land’ uncared for areas across the metropolis, elevated litter basket service, expanded digicam enforcement in opposition to unlawful dumping, and funding for further rat exterminators. New Yorkers will see quicker and extra dependable cleansing of each nook of the town.
- $15 million for the Shelter to Housing Action Plan, which incorporates a package of reforms to the CityFHEPS city-funded housing voucher program to make vouchers extra broadly accessible and simpler to make use of extra rapidly.
- $3.0 million to change faculty boilers to burn cleaner gasoline in help of the mayor’s “Leading the Charge” initiative to fight local weather change. The conversion to cleaner-burning biofuel will enhance neighborhood air high quality, largely in Black and Brown communities disproportionately impacted by increased charges of respiratory sickness, by decreasing disease-causing particulates from onsite combustion.
- $2.6 million to run a pilot residential curbside organics assortment program in Queens, which was introduced by the mayor and started working in October.
Read the November Financial Plan Update here.
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