REMARKS
Justin L. Brannan's Opening Remarks
0:10:22
·
3 min
Council Member Justin L. Brannan highlights changes in revenue projections and the need for accurate financial planning.
- Brannan revisits the Finance Committee's skepticism towards the mayor's proposed budgetary constraints, emphasizing the administration's adjustment towards the Council's revenue projections.
- He reports an improved economic outlook and forecasts additional tax revenue growth, despite expecting moderate growth rates compared to the previous decade.
- Brannan stresses the importance of accurate data sharing and collaboration between the City Council and administration to support NYC's working families.
- He calls for efforts to mitigate potential state-imposed costs and to ensure the city receives fair funding from Albany.
Justin L. Brannan
0:10:22
Thank you, speaker Adams.
0:10:24
3 months ago in these chambers, the finance committee held a hearing on the mayor's November financial plan.
0:10:30
At the time, We questioned the administration on yet another proposed round of pegs, and we challenged the need for an across the board hiring freeze.
0:10:39
That we said was too blunt and crude for what was in front of us.
0:10:43
A side that was used when the moment called for a scalpel.
0:10:47
At the time, we noted the administration was operating on outdated information, and we forecast that city revenues would be significantly higher what the administration was pointing to as the reason for the proposed cuts.
0:11:00
In a month since bit by bit, the administration has indeed reversed course on both their pegs and the hiring freeze and has updated their forecast of revenues to largely match the outlook the council had projected about 3 months ago back when we were told that council economists were being too liberal with our forecast.
0:11:18
Since then, we've seen the economic outlook brighten even further.
0:11:22
In its December meeting, the Fed signaled that policy rates would start declining in 2024.
0:11:28
January unemployment was up over 350,000 jobs, and December's job gains were revised up by another 100,000 jobs.
0:11:37
Based on this improving outlook, the council has increased its forecast and we now expect f the remainder of FY 24 into FY 25 to generate a proxy $3,300,000,000 more in tax revenue than in OMV's current projections today.
0:11:54
Despite this improved outlook, The Council's forecast expects tax revenue growth to average a moderate 3.3% through the financial plan, staying below the robust 5.5% rates we saw in the last decade.
0:12:07
This expected revenue addresses some of the out year gaps, but there's still work to be done to resolve them fully.
0:12:13
That is to say the council is not blind to the economic uncertainty ahead.
0:12:18
Further potential costs imposed by the state budget like the intercept of a hot capital fund sales tax and imposing a rate increase of state FEP's housing vouchers without the equivalent state funding are on the table right now.
0:12:30
Last month, the speaker and I testified before the state legislature about the burdens these costs would add to the city along with the policy recommendations to increase affordable housing.
0:12:40
Which are also thereby boost growth in the city's construction sector.
0:12:45
We know you share our goal of ensuring the city receives the funding we deserve from Albany.
0:12:49
And we must work together to reverse these unfair cost shifts.
0:12:53
It's important that we recognize not only how much tax revenue New York City sends to Albany each year, but that our city and our state successes are inextricably linked.
0:13:02
As we move forward in examining and shaping the budget to come, Everybody at the negotiating table must walk in the room and work off the same accurate and shared set of data and facts.
0:13:13
New York City's working families cannot afford the whiplash of unnecessary cuts and reversals to essential services.
0:13:20
As the co equal branch of our government, City Council urges the administration to put forward an objective assessment of the city's economy, and we look forward to continued dialogue and negotiations in good faith.