“New York City is contending with the devastating economic effects of the pandemic and the long road back to normal. Today, in releasing its preliminary 2022 budget, the city took important steps to address the uncertain future.

“The FY 2022 budget revised property tax collections downward by $2.5 billion. This is an unprecedented drop. We have not seen property tax collections decline in more than 20 years and never at these levels. Historically, this is the city’s largest and most stable resource, but weaknesses in the real estate market could impact this revenue for years to come. Income and corporate tax receipts continue to come in stronger than expected, fueling a surplus for FY 2021, which the city plans to leverage in the FY 2022 budget.

“The city's financial plan continues to rely on debt refinancings, headcount reduction through attrition and some risky savings assumptions, but avoids steeper cuts to city services. The preliminary budget does not rely on additional direct federal relief or anticipate significant federal stimulus for businesses and individuals.

“I am optimistic that the federal government will step up and offset revenue losses for the city, as well as the state and MTA, and boost the regional economy so that it can recover.”