AGENCY TESTIMONY
Program to Eliminate the Gap (PEG) cuts and their impacts
1:31:53
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150 sec
The IBO details the Program to Eliminate the Gap (PEG) cuts implemented by the administration, highlighting specific areas affected and the overall impact on the budget. Some restorations have occurred, but significant cuts remain in various sectors.
- Libraries face cuts of $24 million in 2024 and $22 million annually thereafter
- Older adult centers are targeted for cuts totaling $19 million in 2024 and $24 million in 2025
- Cultural organizations face cuts of $13 million for the Cultural Development Fund and Cultural Institutions Group in 2024, and $8 million for 2025
- Programs serving justice-involved individuals face cuts of $32 million in 2025 and $18 million in 2026
- The Department of Sanitation's composting program expansion is delayed, resulting in $2.4 million annual savings
- Total planned PEG cuts amount to $232 million in 2024 and $238.9 million in 2025, which is smaller than the estimated budget surpluses
Louisa Chafee
1:31:53
After two rounds of 5% agency cuts through PEGS, the administration canceled the final 5% PEG that had been announced last fall.
1:32:02
While some PEGS recognize administrative efficiencies, other PEGS cut programs that provide services to New Yorkers.
1:32:11
Certain restorations of previous PEG reductions have occurred while others remain, and new funding cuts were added.
1:32:19
To be specific, libraries are projected to be cut by 24,000,000 in 2024 and 2020 22,000,000 in every year thereafter.
1:32:30
Older adult centers are targeted for cuts totaling 19,000,000 in 24,000,000 in 2025.
1:32:37
Despite partial restoration for cultural organizations, some significant cuts remain.
1:32:43
13,000,000 for Cultural Development Fund and Cultural Institutions Group for 24,000,000 and 8,000,000 for 2025.
1:32:51
Similarly, despite some restorations for programs serving justice involved individuals, cuts of 32,000,000 in 2025, and 18,000,000 in 2026 also remain.
1:33:03
The Department of Sanitation's delayed expansion of the City's composting program currently accounts for planned PEGs of $2,400,000 annually in 20 4 and 20 5, delaying curbside organic collection in the Bronx and Staten Island from April 24 to October 24.
1:33:21
The information technology system and related staffing that currently supports essential parts of the city's procurement process, such as the procurement issuance, RFPs, processing, and invoice payments is set to be cut by 3,900,000 in 24, and 2,500,000 every year thereafter.
1:33:43
This IT system is critical to vendors that deal with the city, including non profit service providers, minority and or women owned businesses, and other small businesses.
1:33:53
So if we total up these pegs, including the cuts to early childhood from previous plans, the Administration's still planned peg cuts include $232,000,000 in $24,000,000 and $238,000,000 in $900,000 in 'twenty five.
1:34:10
Those are programmatic cuts.
1:34:12
That's far smaller than the surplus amounts that the Administration and IBO have estimated for the current year.
1:34:22
Budgeting Practices.
