AGENCY TESTIMONY
Economic resilience and its impact on tax revenues
5:04:27
·
119 sec
Jiha discusses the unexpected economic resilience despite Federal Reserve contractionary monetary policies. He explains how this resilience has positively impacted tax revenues and contributed to the city's financial stability.
- Economy grew by 3% in the second half of 2023, defying recession predictions
- Stronger economy generated additional tax revenues
- Upward revision of tax revenue forecast by $690 million in FY24 and $101.7 billion in FY25
- Emphasis on the importance of achieving agency savings and lower migrant costs, not relying solely on revenue increases
Jacques Jiha
5:04:27
We also benefited from a resilient economy that has shown tremendous strength despite the Federal Reserve contractionary monetary policies.
5:04:38
Between March of 2022 July of 2023, the Federal Reserve weighs its benchmark weight 11 times to slow down the economy and cool inflation.
5:04:51
As a result, most economists predicted a recession in the second half of twenty twenty three.
5:04:59
Instead, the economy grew by 3% in the second half of twenty twenty three resulting in a growth of 2 a half percent for that year.
5:05:11
The stronger economy generated additional tax revenues which are reflected in the plan.
5:05:17
Consequently, in the executive budget, we revised upward our tax revenue forecast by an additional $690,000,000 in fiscal year 24 and $101,700,000,000 in fiscal year 25.
5:05:32
Put simply, because of our prudent management, we have stabilized the city's finances without raising taxes, laying off employees, significantly disrupting services, and drawing down our reserves, which remain at a near record of $8,200,000,000 It is important to note that none of this would have been possible if we had relied on revenues alone to bail us out.
5:06:06
We had to achieve agency savings and lower migrant costs.
5:06:13
As we planned in real time, we also could not make risky bets about the country's economic trajectory.
5:06:22
We could not gamble with the city's future.
