January 16, 2020
“In planning for the next year, we are facing an unprecedented $6 billion State budget gap. Medicaid cuts could reverse years of progress at NYC Health + Hospitals and impact health care for the most vulnerable. We will work with our partners in Albany to continue to find savings while fighting to protect health care for all New Yorkers.”
- Mayor Bill de Blasio
Today, Mayor Bill de Blasio presented New York City’s Preliminary Budget for Fiscal Year 2021 (FY21).
The FY21 Preliminary Budget is $95.3 billion. This budget:
Growth in the budget is lower than in previous years, at 2.7%. This is primarily driven by labor settlements and benefits, which make up almost two-thirds of the growth, debt service, education, and criminal justice mandates. The Preliminary Budget reflects an increase in tax revenues with a yearly growth rate of 4.6% in FY20. Our FY21 revenue estimate is cautious at 2.0% growth, reflecting signs that the local and national economies are slowing.
Read the FY21 Preliminary Budget here.
A NEW REALITY
This budget was crafted in light of New York State’s $6 billion budget gap, of which $4 billion is a Medicaid deficit. This is the largest State deficit that has occurred during this Administration, and could mean significant cuts to the New York City budget.
NYC Health + Hospitals (H + H), would bear the brunt of these cuts. The hospital system, which serves over one million New Yorkers annually - including some of the most vulnerable - has achieved ambitious goals through the Administration’s transformation plan. This includes closing over $1 billion of its budget gap, meeting planned revenue and expense goals, and improving collection and billing practices. Now, more patients have primary care doctors, expanded access to expert medical care, and their appointment wait times have been reduced. Cuts to the H + H budget would jeopardize this financial recovery and care for New Yorkers.
Together with allies in Albany, the City will fight cuts and work with the State on changes to their Medicaid system that will provide savings.
Additionally, the MTA continues to demand more out of New York City taxpayers— $3 billion to the MTA capital plan and $100 million more annually for Access-a-Ride, without addressing root causes of the problem.
Facing these challenges, New York City continues to demonstrate fiscal responsibility:
INVESTMENTS FOR CRITICAL NEEDS
The FY21 Preliminary Budget helps rebuild vital infrastructure across the city and funds crucial services that increase fairness and keep New Yorkers safe. All new expense spending is offset by savings. The City will: