Today, Mayor Bill de Blasio presented New York City’s Preliminary Budget for Fiscal Year 2020 (FY20).
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The FY20 Preliminary Budget is balanced, totaling $92.2 billion. This budget:
- Demonstrates fiscal responsibility and caution in the face of uncertainty in Washington, D.C., potential cuts and cost shifts from Albany and a possible economic slowdown.
- Makes modest investments that continue to make New York City the fairest big city in America and provide critical services to all New Yorkers.
- Sets a savings goal of $750 million which will be achieved in part by deepening the City’s partial hiring freeze and implementing this Administration’s first Program to Eliminate the Gap (PEG).
Click here to view the FY20 Preliminary Budget.
“In planning for the next fiscal year, we are facing new realities and tough choices. The economy is slowing and Washington and Albany are looking to stick us with the bill. This budget will advance the priorities of our Administration while challenging agencies to find savings in other areas. The end result will be a responsible plan that will continue our mission to make New York City the fairest city in America.” –Mayor Bill de Blasio
On the Horizon
New York City’s finances face strong headwinds and economic uncertainty. Albany is threatening to impose $600 million in budget cuts and shifts that may impact our ability to educate our children, provide financial assistance to families in need, and deliver health services to vulnerable New Yorkers. Uncertainty in Washington D.C. is a substantial concern. Another federal government shutdown would cost New Yorkers who rely on food stamps, rental assistance and other programs, $500 million per month, beginning in May. This includes $110 million a month in federal reimbursements to the City government.
Additionally, tax revenues are coming in at a slower pace than last year. The City now projects that Personal Income Tax revenue will be $935 million less than last year. Further, leading economists and business leaders have forecast a slowdown in the economy come 2020. This economic outlook has led the Administration to take its responsible budgeting even further.
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In the face of these challenges, New York City continues to demonstrate fiscal responsibility by:
- Savings in this budget: In the Preliminary Budget, the City has achieved $1 billion in savings across FY19 and FY20.
- Deepening savings: Savings will be taken further by April, setting an additional savings goal of $750 million, which will be achieved in part by implementing this Administration’s first Program to Eliminate the Gap and expanding the Partial Hiring Freeze. The Partial Hiring Freeze, announced in April 2017, has already saved the City $448 million.
- Maintaining historic levels of reserves. In this Preliminary Budget, and each year of the financial plan, the City has set aside $1.0 billion in the General Reserve and $250 million in the Capital Stabilization Reserve, the latter of which was created by this Administration. The Retiree Health Benefits Trust fund currently has $4.5 billion, with $3.6 billion added as a result of actions taken by this Administration.
Fairest big city in America:
The FY20 Preliminary Budget will continue to fund crucial services for New Yorkers and promote fairness across the city. The City is making modest investments that guarantee all New Yorkers access to healthcare, expand 3-K for All, continue to keep New Yorkers safe and strengthen our infrastructure. The City will:
- Guarantee healthcare access for 600,000 uninsured New Yorkers by investing $25 million, growing to $100 million at full ramp up, for NYC Care. NYC Care will launch in Summer of 2019 in the Bronx and across New York City in 2021
- Invest $106 million in FY20 to continue our commitment to Fair Fares by providing half-priced MetroCards to low-income New Yorkers.
- Accelerate NYPD Crisis Intervention Training for patrol officers most likely to respond to mental health-related emergencies, totaling $5.3 million.
- Deepen our investment in 3-K for All by adding $25 million for two new districts in the Bronx and Brooklyn, which will bring the total number of kids starting this fall to 20,000. With these two new districts, there will be a total of 14 3-K for All districts by September 2020. The City will now be serving the 10 highest-need districts in the city.
- Invest $2.7 million annually towards the goal of speeding bus service by 25 percent by December 2020. The Department of Transportation will give buses green-light priority at 300 new intersections per year, helping them stay on schedule.
Click here to view the FY20 Preliminary Budget.