January 14, 2021
“After one of the most painful years in our City’s history, this budget puts us on a path to recovery while making responsible choices in light of steep revenue losses due to COVID-19. President-elect Biden will help our recovery by increasing FEMA reimbursement, and new Democratic majorities in Congress must move us forward with a federal COVID relief package that includes direct local aid.” - Mayor Bill de Blasio
Today, Mayor Bill de Blasio presented New York City’s Preliminary Budget for Fiscal Year 2022 (FY22).
The FY22 Preliminary Budget is $92.28 billion. This budget:
Read the FY22 Preliminary Budget here.
COVID-19’S IMPACT ON THE BUDGET AND PROPERTY TAXES
This budget was crafted in light of the devastating impact COVID-19 has had on our city and economy. The City’s suffered a substantial $10.5 billion drop in its tax revenue over FY20-22; this includes a $1.5 billion decline since November in this fiscal year and the next.
Property tax revenue declined by $2.5 billion dollars in FY22 due to a reduction in assessed property values, however this is partially offset by growth in Business and Personal Income taxes. This is the largest decline in property tax revenue since 1996.
LOCAL AID FROM FEDERAL GOVERNMENT IS KEY
The City has had to spend $5.9 billion on COVID-19 related expenses, approximately $1.3 billion of which is not currently covered by federal reimbursement. The incoming Biden Administration recently announced he plans to raise the reimbursement rate to 100 percent, which will provide approximately $1 billion in immediate relief. But the federal government has so far failed to pass a COVID relief package with direct local aid that makes up for our revenue loss. With Democratic majorities in Congress, a federal COVID relief package must be passed to speed up recovery. With direct local aid, New York City can be made whole again.
The State of New York has threatened to cut $8 billion from localities, which could mean up to $4 billion in cuts for New York City. In addition to aid from the federal government, the State should raise taxes on the wealthy to avoid devastating cuts that affect working people. The City will fight any cuts that harm New Yorkers, especially those concerning education, healthcare and Medicaid.
Meanwhile, the Federal Government has allocated to New York State a total of $4 billion in federal stimulus aid for K-12 schools, and New York City is owed at least half (approximately $2 billion). The State must release this aid without supplantation. This money will go toward reopening costs the City has already incurred, reopening needs for September and closing the COVID achievement gap.
Facing these challenges, New York City continues to demonstrate fiscal responsibility:
INVESTMENTS FOR CRITICAL NEEDS
The FY22 Preliminary Budget invests in critical needs and COVID-19 related recovery, including: