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January 21, 2016
This budget builds on the strong economic foundation we've created, reaffirming our commitment to responsible government that meets challenges head on. We're addressing the needs of New Yorkers through targeted investments in public safety, quality of life, vital social services, education, and more, while protecting the city against the many risks ahead.
– Mayor Bill de Blasio
Today, Mayor Bill de Blasio presented New York City’s Preliminary Budget for Fiscal Year 2017 (FY17).
The FY17 preliminary budget is balanced, totaling $82.1 billion, with the increase over the prior budget attributable to the new recognition of federal grants, as well as targeted investments in the City’s fiscal health and future. In particular, this budget:
Click here to view the FY17 Preliminary Budget.
ECONOMIC GROWTH – AND RISKS
Despite another year of strong economic growth, risks and uncertainties continue to grow.
New York City’s local economy is strong, adding over 200,000 new jobs since January 2014 –the highest two-year gain ever – for a total of 4.2 million jobs That job growth is particularly pronounced in the outer-boroughs, with 5.8 percent growth in Brooklyn, 3.9 percent growth in Queens, 3.4 percent growth in the Bronx, and 2.9 percent growth on Staten Island – in 2014 alone. The economy is more diverse than ever; for example, 2014 saw a 10 percent growth in NYC’s tech sector. NYC’s population increased by over half a million people between 2000 and 2014, and the city saw an all-time high of 58.3 million visitors in 2015.
However, it’s clear that many New Yorkers are still struggling even as the economy grows – and major risks loom ahead. Wage growth has primarily benefitted the highest-paid, as income inequality continues to grow. Meanwhile, global stock markets have lost trillions since January 1, 2016, as retail sales and industrial production decline and business spending remains slow.
The last recession in 2008 – which was not predicted by the country’s top economists – led to dramatic losses on the federal and local levels, including a $12.5 billion impact on NYC taxpayers ($7 billion spent in reserves; $2 billion in increased taxes; $3.5 billion cut to vital services).
RESPONSIBLE BUDGETING
These risks are why the de Blasio administration has continued to strengthen the City’s long-term fiscal position; independent monitors and rating agencies continue to affirm the City’s strong budgetary management.
Mayor de Blasio boosted the City’s reserves to unprecedented highs, which are maintained in the Preliminary Budget, including:
The administration is also managing out-year gaps and continuing to find savings across City government. As of the Preliminary Budget, agency and debt savings will reduce expenses by over $1 billion in FY16-17, with more to come in the Executive Budget this spring.
When Mayor de Blasio took office on January 1, 2014, all of the City’s labor contracts were expired. Since then, the City has settled almost all contracts – covering 94 percent of the workforce – through responsible settlements with both civilian and uniformed employees, while securing $3.4 billion in unprecedented, guaranteed healthcare savings geared toward bending the cost curve.
The administration is also meeting obligations to the five pension systems, with a target of 100 percent funding by 2032. This includes adding approximately $600 million per year for costs stemming from the Chief Actuary’s new mortality projections, which show increased lifespans for City employees.
NYC Health + Hospitals, the City’s public hospital system, provides a vital lifeline for the most vulnerable New Yorkers; one in six New Yorkers have been treated through its hospitals, clinics, and other facilities. With federal and state reimbursement rates continuing to be cut, Health + Hospitals is working to transform its operating model. As this continues, the City will provide $337 million to cover pressing needs.
TARGETED INVESTMENTS IN NYC’S FUTURE
Mayor de Blasio’s prior two budgets have invested in priorities such as 200,000 affordable housing units; free high-quality, full-day Pre-K for All; an aggressive new effort to tackle homelessness; and moving nearly 2,000 additional NYPD officers onto the street.
The FY2017 Preliminary Budget builds on that foundation through targeted investments aimed at lifting up families across the five boroughs:
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