New York State Comptroller Thomas P. DiNapoli issued the following statement today after giving remarks at the New York City Financial Control Board:
“Federal relief and higher revenues in City Fiscal Year (FY) 2022 allowed the city to build reserves and other budgetary cushion, but many of the potential fiscal issues facing the city remain out of its direct control. The city faces substantial fiscal risks in the coming years that will require fiscal discipline and preparation.
“The enormity of these risks requires the city to continue to identify areas for revenue enhancement, cost efficiencies and savings, track how its services are delivered amid changing staffing levels and build additional reserves to guard against fiscal pressures.
“With over $8 billion in reserves and other funds in its health trust, the city has made progress in buffering against uncertainty while maintaining the programs necessary to foster a recovering economy. But reserves must keep up with spending growth. New York City is in a better place than it was two years ago, but clear steps must be taken to protect its fiscal position from eroding.”
DiNapoli also highlighted the understated importance of fiscal planning, consistency and transparency, which are fundamental components of the Financial Emergency Act. He encouraged the city to recognize the important role fiscal governance has in projecting confidence to credit markets and develop a reserve policy that systematizes how it builds up funds for a rainy day.
Report
Review of the Financial Plan of the City of New York (Released Aug. 17)
Other Reports & Fiscal Tracking Tools
Strengthening New York City's Rainy Day Fund
Review of the Financial Plan of the City of New York, April 2022