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AGENCY TESTIMONY
Chronic underfunding practices in NYC budget
4:33:42
ยท
104 sec
The IBO identifies several chronically underfunded areas in the New York City budget, which exacerbate the city's financial challenges amid external budget threats.
- City FHEPS (housing voucher program) is significantly underfunded for future years
- Uniformed overtime spending is projected to exceed the budget by $840 million in 2025
- Special education (Carter cases) is underfunded by $258 million compared to last year's spending
- Lack of transparency regarding funding sources to replace expired COVID-19 federal aid, particularly in the Department of Education
Louisa Chafee
4:33:42
Now let's talk about chronic underfunding practices as the city seeks to navigate these external budget threats.
4:33:49
So the city's financial challenges extend beyond federal policy and reliance on past surpluses.
4:33:55
As I've previously testified, IBO continues to identify a number of chronically underfunded areas most noticeably.
4:34:04
The program known as City Fighting Homelessness and Eviction Prevention Supplement known as City FEPPS, the housing voucher program.
4:34:13
While the administration has aligned the 2026 budget for the program with its historical trends, it continues to significantly under fund for future years.
4:34:23
Uniformed overtime.
4:34:24
Similarly, IBO estimates that the city is currently on track to spend more than $840,000,000 over and above the budget for uniformed overtime in 2025.
4:34:37
DOEs and partial hearing, known as Carter cases.
4:34:40
The cost to support students with disabilities who are not able to appropriately be educated by DOE continue to soar.
4:34:48
Although DOE spent 1,200,000,000.0 last year, the city has budgeted 258,000,000 less than this this year, and we know this cannot be.
4:34:59
The end of federal COVID nineteen aid.
4:35:02
Finally, the city's budget continues to lack transparency regarding the source of funds to plug the gaps caused by the end of COVID nineteen funding, particularly at DOE.
4:35:15
These programs were previously supported by federal stimulus funding sources that have now expired.
4:35:22
I'd also like to talk about procurement choices furthering fiscal risks.