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AMERICANNewsline

16 NOVEMBER 24, 2023

Mayor Adams Releases November

2023 Financial Plan Update

With Migrant Crisis Set to Cost Nearly $11 Billion Over Just Two Fiscal Years and FY25 Budget;

Gap Expected to Surpass Unprecedented $7 Billion, Administration Implemented PEG to

Identify Efficiencies and Deliver Balanced Budget as Required by Law

to grow to at least $12 billion over
OUR BUREAU three fiscal years — between FY23
and FY25 — if circumstances do not
NEW YORK, NY
change. With sunsetting COVID-19
ew York City Mayor Eric Ad- stimulus funding, slowing FY24 tax
ams today released the City of revenue growth, expenses from la-
NNew York’s November Finan- bor contracts this administration
cial Plan Update for Fiscal Year 2024 inherited after being unresolved for
(FY24). With the city facing outyear years, and a lack of significant state
gaps reaching levels unprecedented or federal government action on the
for this stage of the budget cycle, the asylum seeker crisis, the mayor took
Adams administration took targeted action the following month, announc-
but significant and necessary steps to ing a 5 percent PEG on city-funded
responsibly manage the city’s financ- spending for all city agencies with
es with minimal impact to services plans for additional rounds of PEGs
New Yorkers rely on and deliver a in the Preliminary and Executive
balanced budget, as required by law. Budgets. New city-funded spending
The FY24 budget is $110.5 billion was limited to those protecting life
and remains balanced. and safety, fulfilling legal mandates,
The November Financial Plan maintaining necessary operations, or
Update was crafted in the face of off this time, make no mistake: Mi- part in delivering long-overdue sup- generating revenue.
significant fiscal challenges, with the grant costs are going up, tax reve- port, funding, and resources.” The FY24 budget has grown
city having spent $1.45 billion on the nue growth is slowing, and COVID “By law, we’re required to bal- $3.4 billion since budget adoption in
asylum seeker humanitarian crisis in stimulus funding is drying up. No city ance our budget, and this November June, in recognition of $2.6 billion in
FY23 and set to spend nearly $11 bil- should be left to handle a national Financial Plan Update successfully grant funds and $776 million of bet-
lion on this crisis over just FY24 and humanitarian crisis largely on its own, does that with minimal disruptions to ter-than-expected revenue growth,
FY25 without significant and timely and without the significant and time- services,” said Chief of Staff Camille primarily driven by income and sales
state and federal support. Through ly support we need from Washington, Joseph Varlack. “Our agencies have tax collections. Outyear gaps are $7.1
strong fiscal management and with D.C., today’s budget will be only the stretched dollars further than ever billion in FY25, $6.5 billion in FY26,
the limited fiscal tools available — beginning.” before to deliver as many services as and $6.4 billion in FY27.
including a successful Program to “Our administration has a legal possible to New Yorkers while secur- The PEG implemented by the
Eliminate the Gap (PEG) — the ad- and fiscal responsibility to come to ing our city’s financial future, and I’m administration in the November Fi-
ministration kept the FY24 budget the table, balance the budget, and grateful to the dedicated public ser- nancial Plan Update to keep FY24
balanced with minimum disruption make the tough decisions today to vants who will have to do more with balanced was successful, setting up
to services and without raising taxes ensure a better tomorrow for New less as COVID stimulus dries up, tax the city to save $3.7 billion over two
on working-class New Yorkers — de- York City,” said First Deputy Mayor revenue growth levels off, and the fiscal years. Every agency met their
spite having received limited state Sheena Wright. “We cannot ask New asylum seeker crisis continues to eat savings target.
and federal aid. Yorkers to balance their checkbooks away at our city’s finances. But we’re Looking forward, asylum seek-
“For months, we have warned without city leaders doing the same. not out of the woods yet, not by a long er costs in this plan contributed sig-
New Yorkers about the challenging These tough but necessary decisions shot. If we don’t get the help we need nificantly to a historically large $7.1
fiscal situation our city faces,” said were made to protect the city’s fiscal from the federal government, we’ll billion FY25 budget gap — $2 billion
Mayor Adams. “To balance the bud- future while continuing to deliver have to take more drastic measures greater than it was in June’s FY24
get as the law requires, every city vital government services. Howev- to balance our budget going forward.” Adopted Budget — despite the suc-
agency dug into their own budget to er, New York City should not carry In August 2023, Mayor Adams cessful PEG in this plan. By law, this
find savings, with minimal disruption this burden on its own. The federal laid out new projections estimating gap must be closed in mid-January,
to services. And while we pulled it and state government must play their the cost of the asylum seeker crisis two months from today.

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