AGENCY TESTIMONY
IBO's budget surplus forecasts for current year and FY2025
1:28:09
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123 sec
The IBO presents its budget surplus forecasts for the current year and FY2025, comparing them with the Administration's projections. They forecast a larger surplus for the current year and project a surplus for FY2025, unlike the Administration.
- IBO forecasts a $5.1 billion surplus for the current year, $1.1 billion higher than the Administration's projection
- For FY2025, IBO projects a $1.1 billion surplus, while the Administration anticipates a $113.6 billion budget
- The IBO's projections differ from the Administration's, providing an alternative perspective for the Council to consider
Louisa Chafee
1:28:09
IBO forecasts a $5,100,000,000 surplus in the current year with $1,100,000,000 higher than the Administration's expected surplus of $3,900,000,000 The Administration anticipates this year's budget to be $116,800,000,000 IBO projects that 2025 will also end with a surplus estimated currently at $1,100,000,000 dollars The Administration anticipates next year's budget to be $113,600,000,000 Starting in 2026, IBO projects larger budget gaps than the Administration, $2,600,000,000 in 'twenty 6, 7,900,000,000 in 27, and 6,000,000 in 28.
1:28:56
IBO's higher gap estimate in 20 7 is in part due to the Administration's budgeting of 1 $1,000,000,000 in state funding for asylum seekers that the state has yet to commit to.
1:29:09
IBO's estimates reflect a more cautious assumption that such costs may need to be covered by city funds.
1:29:18
IBO anticipates out year gaps can be addressed over the course of the coming years, as a $6,200,000,000 gap for 2026 represents 5.5 percent of IBO's projected total revenues.
1:29:32
The Administration has closed gaps of similar magnitude in the recent past.
1:29:37
In the past 5 years, the Administration stated out year gaps at the executive budget peaked at 5.3 percent of revenues, still well below the challenging times of the early to mid 2000s, when the Administration's out year gaps peaked at 9.1 percent of revenues.
1:29:54
Both the Administration and IBO present a surplus in the current year, but differ on the size of the projected surplus.
1:30:02
The Council now has the opportunity to consider these findings in relationship to the fiscal and policy choices being proposed by the Administration in the executive budget.
