February 1, 2018
This Administration is focused on making New York the fairest big city in America. Every decision in this budget was weighed on whether it brought us closer to that goal. We have no illusions about the real threats we face from D.C. and Albany. That’s why we’re investing in our people while maintaining historic reserves and safeguarding our city’s financial future.
– Mayor Bill de Blasio
Today, Mayor Bill de Blasio presented New York City’s Preliminary Budget for Fiscal Year 2019 (FY19).
The FY19 Preliminary Budget is balanced, totaling $88.67 billion. In particular, this budget:
ON THE HORIZON
Last year, President Trump passed the most draconian tax law in recent history. While the City is still analyzing the budgetary impacts, the facts are clear: middle- and lower-class New Yorkers will pay. This budget continues to provide the services New Yorkers rely on, while preparing for potential hits to New York City.
New York City’s current total risk from Washington is up to $700 million – and that could easily go up when the president puts out his budget this month. If Congress does not reinstate the Disproportionate Share Hospital funding, NYC’s Health + Hospitals could be facing a loss of $400 million per year. As of January 1, the City lost its ability to refinance with tax-exempt bonds – an estimated cost of up to $100 million annually. Additionally, by taking actions that reduce investor interest in the Low Income Housing Tax Credit, the Trump’s tax law threatens another $200 million a year in capital funding.
The cuts in the state Executive Budget are no less alarming. New York City is facing $400 million in cuts and cost shifts that would directly impact our City’s most vulnerable and deeply threaten our ability to provide the services we’re solely responsible for.
In the face of uncertainty, the City is maintaining the reserves it’s built up in historic fashion. Specifically:
As a result, independent monitors and rating agencies continue to affirm the City’s strong budgetary management.
The Administration is also managing out-year gaps and continuing to find savings across City government. As of the Preliminary Budget, agency, partial hiring freeze and debt savings will reduce expenses by $900 million in FY18-19. This is in addition to the nearly $500 million found in the FY18 November Plan and with more to come in the Executive Budget this spring.
TARGETED INVESTMENTS TO MAKE NYC THE FAIREST BIG CITY IN AMERICA
This budget makes targeted investments to make good on the Mayor’s promise to bring fairness to all New Yorkers. Mayor de Blasio’s prior budgets have invested in priorities that can be felt across the five boroughs, such as building and preserving more affordable housing units than any other administration; providing free high-quality, full-day Pre-K for All; and moving nearly 2,000 additional NYPD officers onto the street helping secure New York City’s record-low crime rate.
The FY 2019 Preliminary Budget builds on that foundation and touches the lives of all New Yorkers. Specifically, the budget: