New York State Comptroller Thomas P. DiNapoli released the following statement on New York City’s fiscal year (FY) 2024 preliminary budget proposal:
“The plan takes an important step towards revenue transparency, allocating the remainder of federal pandemic relief and increasing projections based on year-to-date tax collections. In combination with another Program to Eliminate the Gap savings initiative, which include savings from substantial vacancies at a number of agencies, the city now anticipates a FY 2023 surplus of $2.2 billion, $1.5 billion more than it had projected in November. The city intends to transfer those funds in FY 2024 to prepay a portion of next year’s expenses.
“These changes to the FY 2023 budget have allowed the city to balance its FY 2024 budget and reflect the continuation of a healthy short-term fiscal outlook. However, while projections of budget gaps in FY 2025 and FY 2026 have declined, the city has chosen not to reflect the anticipated recurring costs associated with asylum seekers, which remains one of a number risks the city will have to grapple with. The city must lay out these and other risks transparently so that it may continue to plan and identify new ways to close these gaps without harming services, which would be counterproductive to the city, and state’s, economic recovery.
“Given better than anticipated revenue, New York City had a chance to set aside additional funds in reserves, but missed the opportunity to do so in its preliminary budget and four-year financial plan, even as it faces substantial fiscal and economic uncertainties.
“My office will release a comprehensive analysis of the budget and financial plan in the coming weeks.”