QUESTION
Why is CityFHEPS' budget frequently underfunded in preliminary stages?
0:57:08
·
92 sec
CityFHEPS' budget challenges stem from the dynamic nature of rental assistance, affected by caseloads, rent levels, and tenants' incomes.
- Rental assistance spending fluctuates due to variables like caseload, rent levels set by Fair Market Rent (FMR), and tenants' income.
- The dynamic and unpredictable nature of these factors makes long-term budget projections for rental assistance programs difficult.
- For the fiscal year 2024, a record addition of $744,000,000 is made to CityFHEPS' budget.
- Annual budgeting processes with the Office of Management and Budget (OMB) aim to address funding needs accurately.
Diana I. Ayala
0:57:08
In regards to the the budget, because I think that this comes up every single budget cycle, regarding the CityFabs program is the underfunded amounts that are presented as part of the preliminary and you know, even sometimes the executive budget.
0:57:24
It seems like the administration usually overestimates the cost of pro of certain programs to allow some level of flexibility, but when it relates to the city theft program, it's usually always underfunded, and then the adjustments are made later.
0:57:41
Do you do we know why that's the case?
0:57:44
So,
Molly Wasow Park
0:57:45
rental assistance spending is very dynamic because it's a function both of the caseload and how many people were we enroll and then also so that rent levels right as FMR goes up, which has gone up quite substantially over the last several years and then also trends in income because tenants paying 30% of their income and rent.
0:58:05
So with that 3 variable equation, it can be a somewhat difficult number to project multiple years out.
0:58:13
We'll work year by year with OMB to make sure that we are putting the funding in the budget.
0:58:18
There was a significant add this year and the budget for FY 24, as I believe, 744,000,000 for CityFabs, which is a record.
UNKNOWN
0:58:28
Okay.
Diana I. Ayala
0:58:30
Regarding the I'm just looking here to make sure.
Allison Robinson
0:58:40
Okay.
