Fact Sheet: Mayor de Blasio Releases FY 2017 Executive Budget

April 26, 2016

Video available at: http://youtu.be/tp0b1z3xdvg


“At its core, our budget is our roadmap for lifting up communities. After over two years in office, this vision – the strategic investments we have put to work in every neighborhood, coupled with disciplined fiscal management – are producing real results for New Yorkers. Today’s budget builds on that track record, continuing the progressive, responsible and honest budgeting we have established since assuming office.”
– Mayor Bill de Blasio

Today, Mayor Bill de Blasio presented New York City’s Executive Budget for Fiscal Year 2017 (FY17). The FY17 Executive Budget is balanced, totaling $82.2 billion, an increase over the Preliminary Budget of just $0.1 billion.

  • New York City’s economy continues to grow and diversify, with the strongest two-year job gain ever, but economic uncertainty around the globe and declining support from state and federal partners pose significant risks.
  • The Executive Budget adds even more funding to reserves, which have been at unprecedented highs, while continuing to build on the Citywide Savings Program, which now totals over $2.3 billion for this budget – the largest spending reduction program in the last five years.
  • The Executive Budget targets investments in public safety, public health, education, combatting homelessness, vital infrastructure and transportation, and more.

Click here to view the FY17 Executive Budget.

ECONOMIC GROWTH – AND RISKS

New York City’s economy continues to grow and diversify – not just in Manhattan, but in all five boroughs.

Over the past five years, the City’s population has grown at the fastest rate since the 1920s. The City is at an all-time high of nearly 4.3 million jobs, including 249,000 added in the past two years alone – a record for any two-year period in city history, and larger than any other metro area.

The City’s economy also continues to diversify, showing growth across many industries and in every borough, including the first meaningful employment growth in manufacturing in 25 years.

But significant risks remain. The top one percent of earners took home nearly 40 percent of income – and economic indicators for the U.S. and the globe are increasingly worrisome. National GDP growth estimates are below one percent for the first quarter of 2016; global markets have fallen significantly since their 2015 peaks; and recessions and sluggish growth continue around the globe.

New York City’s own tax revenue growth is expected to slow to 3.6 percent in 2016 and 1.9 percent in 2017, compared to an average of nearly 7 percent over the past five years. Meanwhile, support from State and federal partners continues to decline

RESPONSIBLE BUDGETING: SAVINGS AND RESERVES

Given these challenges, the de Blasio administration continues to target its investments while protecting the City against the risks ahead – and independent monitors and rating agencies continue to affirm the City’s strong budgetary management.

The administration is keeping out-year gaps at low, manageable levels, while continuing a strong Citywide Savings Program across agencies. The Executive Budget includes $1.25 billion in new savings through FY17; coupled with the over $1 billion in savings already detailed in the Preliminary Budget, the FY17 Budget reflects over $2.3 billion in savings – the largest spending reduction program in the last five years.

Mayor de Blasio had previously boosted the City’s reserves to unprecedented highs, and is adding to them further in the Executive Budget with another $250 million in the Retiree Health Benefits Trust. In total, the budget includes:

  • $1 billion each year in the General Reserve
  • $3.7 billion in the Retiree Health Benefit Trust
  • $500 million in the new Capital Stabilization Reserve

The administration has also eliminated a major fiscal risk, settling contracts with 95 percent of the municipal workforce – compared to zero percent when Mayor de Blasio took office. These agreements included $3.4 billion in unprecedented, guaranteed healthcare savings through FY19, and $1.3 billion every year after, geared toward bending the cost curve.

TARGETED INVESTMENTS

The FY17 Executive Budget builds on a strong foundation through targeted investments that will improve quality of life and lift up families around the five boroughs:

  • $70 million in capital funds to build a new, fully staffed 116th Precinct in southeast Queens, allowing for faster response times and improved crime fighting.
  • $5 million in FY17 – growing to $9.8 million in FY18 – for an additional 50 more ambulance tours to ensure faster response times for high-priority, life-threatening emergencies in Queens and the Bronx.
  • $5.5 million in FY17 – growing to $11 million in FY19 – for a new, comprehensive effort to prevent and treat opioid addiction.
  • $161 million in FY17 – growing to $310 million in FY18, with support from the State – to raise the Fair Student Funding level for all schools to an average of 91 percent (with no school less than 87 percent) in FY17, and 92.5 percent (with no school less than 90 percent) in FY18.
  • $17 million in FY17 for the Mayor’s Equity & Excellence plan, to provide individually-tailored college plans and to ensure every high school student has access to AP courses.
  • $9 million in FY17 – growing to $40 million in FY19 – to ensure every elementary school is compliant with the State physical education mandate.
  • $66 million in FY17 – ultimately offset by $38 million in savings – for the administration’s comprehensive homeless services plan, focused on prevention and rehousing.
  • $160 million in FY16 in additional funding for NYC Health + Hospitals, part of a plan focused on ensuring the hospital system’s success through stabilizing funding, expanding community-based healthcare, improving efficiency and remodeling an outdated system. The City is also forgiving $180 million a year in debt service for FY17 and out.
  • Tripling of Intensive-Care Mental Health Units on Rikers Island: $8.7 million in FY17 – growing to $24.2 million in FY20 – to add and staff eight new Program to Accelerate Clinical Effectiveness (PACE) units; $2.7 million starting in FY17 to expand pre-arraignment screening in Manhattan; and $2.5 million in FY17 – ramping up to $5 million in FY18 – to expand Hepatitis-C treatment in the City’s jails. The budget also includes $1.9 million in capital funds to improve and speed up patient care through telehealth and 12 new mini-clinics.
  • $21 million in capital funds for new snow removal equipment, focused on increasing responsiveness on smaller, narrow streets.
  • A total of $685 million in capital funds in this budget and the upcoming Ten Year Capital Strategy to accelerate construction of the remaining shafts for the Brooklyn/Queens section of Water Tunnel No. 3, while getting the tunnel activation-ready even earlier and creating a new connection to Staten Island.
  • $276 million in additional capital funds for reconstruction of key bridges: the Ed Koch Queensboro Bridge, the Brooklyn Bridge, and the Manhattan Bridge.
  • An additional $186 million to repave 1,300 lane miles in FY18, bringing FY18 in line with FY17, which will see the highest level of resurfacing in over a decade.
  • $122 million to fully eliminate the Water Board rental payment, providing $183 credits to 1-3 family households and $250 credits to eligible multi-family properties.
  • $42 million in capital funds to purchase four new ferries and reconstruct a ferry pier at the Brooklyn Navy Yard, part of the citywide ferry system.
  • Even more investments in the City’s $20 billion climate resiliency plan, including:
    • $170 million in City funds for storm water management infrastructure to complement the East Side Coastal Resiliency Project from Montgomery Street to East 23rd Street, which is funded by $335 million in federal dollars and expected to break ground next year.
    • $27.5 million in City funds for the Two Bridges section of Lower Manhattan Protect and Connect flood protection, complementing the $176 million recently secured from the federal government, as well as the over $100 million in city funds already invested in the overall project (around the tip of Lower Manhattan).
  • $5.6 million in FY17 – growing to $16.8 million in FY18 – to increase funding for Beacon programs that provide after-school and community services to 70,000 youth and 65,000 adults a year.
  • $10 million in capital funds for land acquisition and design for two new full-service animal shelters in Queens and the Bronx.
  • $1.5 million for vital Board of Elections reforms, with the potential for up to $18.5 million more.
  • $12 million for FY17 to add more than 500 more Parks Department seasonal employees to provide enhanced maintenance and operations at parks, playgrounds and other facilities during peak season.
  • $50 million in capital funds for an indoor pool on Staten Island.
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