Q&A
Personal Services (PS) accruals and potential overstated costs
1:46:26
·
117 sec
Sarah Parker from IBO explains their analysis of Personal Services (PS) accruals and potential overstated costs in FY24.
- IBO found upwards of $800 million in overstated PS costs based on year-to-date spending
- The executive budget has $54.9 billion for citywide staffing costs, averaging $2.1 billion biweekly
- Actual payroll to date averaged about $1.9 billion per biweekly period
- IBO estimates at least $1.2 billion in total PS savings, with $789 million in City funds
Justin Brannan
1:46:26
Thank you.
1:46:29
I wanna ask about, the PS accruals.
1:46:32
In your analysis of the executive plan, you found that there's upwards of $800,000,000 in overstated PS cost in f y 24 based on year to date spending.
1:46:42
Could you tell us how you calculated that total?
Sarah Parker
1:46:46
Yes.
1:46:47
So the executive budget currently has 54,900,000,000 in it for citywide staffing costs.
1:46:56
This would average a biweekly payroll of 2,100,000,000 We looked at payroll to date, as of the May 10th paychecks, and the city had averaged about 1,900,000,000 per biweekly payroll period.
1:47:13
So that's a notable difference.
1:47:16
We then added in there's one time payments that get made towards the end of the year, so including those and also with recently enacted raises for city employees kicking in, we took a a cautious estimate that there is at least 1,100,000,000 in personnel personal service costs, of 1,100,000,000 in underspending and 789, I'm sorry, 1,200,000,000 in estimated savings, 789,000,000 of that would be Citi funds.
1:48:00
This is a place where there are 4 payroll periods left in the fiscal year.
1:48:06
And so looking at spending to date, we know there are savings that already exist.
1:48:12
There could be some changes for the end of the year, so that's why we were very cautious and said, sort of at minimum, we believe there's at least 800,000,000 in savings here.
