June 29, 2023
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Approximately $107 Billion Budget is Balanced and Makes Needed Investments in Future of New York City for Students, Seniors, and Working-Class New Yorkers
Adopted Budget Maintains Near-Record $8 Billion in Total Reserves
Mayor Adams and City Council Worked Collaboratively to Restore Funding to Libraries and Continue to Fund Cultural Institutions
Each Public School to Retain Initial FY23 Funding Levels Even if Enrollment Declined
NEW YORK – New York City Mayor Eric Adams, New York City Council Speaker Adrienne Adams, Council Finance Chair Justin Brannan, and members of the City Council today announced an agreement for an on-time, balanced, and fiscally-responsible approximately $107 billion Adopted Budget for Fiscal Year 2024 (FY24). Despite facing strong headwinds, the budget makes upstream investments in working people and keeps New York safe and clean while contributing to the city’s robust savings program.
“The agreement we reached today comes in the midst of a budget cycle dominated by great challenges and unexpected crises, but I am proud to say that we have successfully navigated through these many crosscurrents to arrive at a strong and fiscally responsible budget,” said Mayor Adams. “Our mission is not to simply save money — it is to set priorities, which include fair labor contracts for our unions, funding for education, the arts, and our libraries, and support for New Yorkers in the greatest need. I thank Speaker Adams, Council Finance Chair Brannan, and the entire Council for their partnership through this process.”
“The Council’s focus in this budget has been to protect the essential services that the people of this city rely on to be healthy, safe, and successful,” said City Council Speaker Adams. “We took seriously our task to negotiate the best possible outcomes and deliver results for the people of our city. Through difficult negotiations, the Council worked to bridge the distance between us and the administration, fighting to restore investments in essential services and funding many programs that we know our families, communities, and city need. Though we have come to a budget agreement today, the Council knows we must continue to push forward in our year-long budgetary, legislative, and oversight efforts to secure the investments that New Yorkers deserve.”
The agreement on the $107 billion budget includes increased funding for youth jobs and apprenticeships and innovative educational programming for public school students. As part of the budget agreement, the city is expanding access to Fair Fares discounted MetroCards, providing more meals for seniors and low-income New Yorkers, and extending the hours for many vacant early childhood education seats, so working families can more easily enroll their children. Additionally, the budget takes advantage of higher-than-anticipated revenues to restore and provide additional funding for libraries and cultural institutions, which will both be funded at a higher level in FY24 than they were a year ago in the FY23 Adopted Budget, even before including City Council discretionary additions. Further, no New York City Department of Education (DOE) public school will have an initial budget lower than their initial budget last year, even if their student population has declined.
The Adopted Budget was crafted in the midst of an ongoing asylum seeker crisis that is currently projected to cost the city $4.35 billion over Fiscal Years 2023 and 2024 –– with $2.9 billion in estimated spending over FY24 alone. Though New York City continues the longstanding tradition of helping immigrants, the city has –– virtually on its own –– cared for more than 81,000 migrants since last spring, and has, thus far, received inadequate federal and state assistance. For this reason, at adoption, the city must add $465 million in FY24 to make up for less-than-expected federal asylum seeker aid.
The administration was able to balance the budget in adoption despite substantial challenges by controlling new agency spending and through a higher-than-anticipated increase in the city’s revenue of $2.1 billion in FY23, driven by continued strength in the local economy –– though tax revenue growth is still expected to slow in coming years. These additional resources were used to pay for agency needs, meet increased asylum seeker costs, and fund City Council discretionary spending and shared Adams administration/Council priorities.
Throughout this budget cycle, the administration has made tough choices that reflect an ongoing commitment to strong fiscal management, including by making government more efficient through budget savings and by maintaining robust reserves.
Since last June, the Adams administration has achieved gap-closing savings of more than $4.7 billion over Fiscal Years 2023 and 2024, which include less-than-anticipated agency spending of $72 million in FY23 and debt service saving of $137 million in FY23 and FY24 recognized in this plan. These savings were achieved without reducing funding to programs or services, laying off a single employee, or cutting school or classrooms budgets.
The FY24 Adopted Budget maintains a near-record $8.0 billion in reserves, which includes $1.2 billion in the General Reserve, $2.0 billion in the Rainy Day Fund, $4.58 billion in the Retiree Health Benefits Trust, and $250 million in the Capital Stabilization Reserve.
Investment Highlights of the FY24 Adopted Budget Include:
Keeping New York City Safe and Clean:
Supporting Libraries and Cultural Institutions:
Lifting Youth and Working Families:
Improving Health and Safety: