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Q&A
Fair Fares program expansion and budget allocation challenges
1:29:14
ยท
3 min
Council Member Ayala discusses the recent expansion of the Fair Fares program and inquires about its budget allocation, particularly the lack of baseline funding for the expansion in future years. Director Jiha addresses the current funding status and future adjustments.
- The Fair Fares eligibility was expanded to include those making up to 145% of the federal poverty level
- Additional funding of $20.8 million for the expanded program has not been baselined
- Director Jiha states that the program is well-funded for FY25 and adjustments will be made based on utilization
- $2 million is budgeted for outreach to increase program usage
- Council Member Ayala expresses concern about the stress of having to repeatedly adjust funding for fluid programs
- Director Jiha acknowledges that many city programs face similar circumstances of not being fully funded based on expenses
Diana Ayala
1:29:14
Yeah.
1:29:14
That's why we need to we need to be pushing on the state and the federal government to fund subsidized housing because this is a reflection of the number of New Yorkers that really cannot afford affordable housing.
1:29:27
They need subsidized housing, which is completely different.
1:29:30
HRA fair fares.
1:29:33
In fiscal year twenty twenty five adopted budget, the eligibility for fair fares was expanded to include those making up to 145% of the federal poverty level.
1:29:42
This expansion of eligibility became effective on January 7.
1:29:46
Funding for the program for this expansion was added in fiscal year twenty five only.
1:29:52
10,800,000.0 of the of new funding and 10,000,000 in unspent funding rolled from the prior fiscal year in the preliminary plan for the budget for Fair Fairs in fiscal year twenty five is 117,000,000, decreasing to 96,300,000.0 in '26 and the out years.
1:30:08
The 20,800,000.0 in additional funding needed for the expanded program has not been baseline.
1:30:15
When will OMBB, add funding to increase the fair base, the Fair Fairs baseline budget?
Jacques Jiha
1:30:22
At this moment in time, the program is, I believe, is well funded for fiscal year twenty twenty five.
1:30:30
And as we go again to the budget cycle, we will see the needs and to see what can be done to adjust, reflect basically reality.
1:30:40
Because at the end of the day, like you said, we basically roll some savings because the program has been underutilized.
1:30:52
So we're going to see as the year progress to see how many more people use the system and we will adjust our budget to reflect the increase population.
1:31:11
We're doing a lot of outreach, like $2,000,000 in budget for outreach, to make sure that people use the program.
1:31:18
But again, as I said, as we go move toward adoption, we'll leave you.
1:31:22
And if there is a need, we will adjust the budget appropriately.
Diana Ayala
1:31:25
And I recognize that that's been true even in the city fabs side, but, you know, it's a little bit, I imagine on your end as well, stressful to have to come back every single and anticipate what, you know, the new needs are gonna be when the programs are kind of are fluid.
1:31:41
They're they're fluid.
1:31:42
But how many programs do we have in the city budget that are facing similar circumstances that are funded but not fully funded based on, you know, expense?
Jacques Jiha
1:31:57
A lot.
Diana Ayala
1:31:58
A lot?
Jacques Jiha
1:31:59
A lot of them.
Diana Ayala
1:32:00
Wow.
1:32:01
Yeah.
1:32:02
That's not that's not good, Jeff.
Jacques Jiha
1:32:03
It's it's a it's a lot of them.
1:32:04
It is, you know, as I said, it's a it's a conversation we're gonna have to have at some point.
Diana Ayala
1:32:11
Yeah.
1:32:12
Yeah.
1:32:13
Yeah.
1:32:15
Do you know now with the new rule and since the new rule change is in effect, what the city is doing so far in regards to outreach to ensure that eligible residents are aware of the change?
Jacques Jiha
1:32:25
As I said, we have about $2,000,000 in budget.
1:32:27
We have $2,000,000 for outreach.
1:32:30
And We
Diana Ayala
1:32:31
can get back to you.
1:32:32
Okay.
Jacques Jiha
1:32:33
Well, we could provide you the detail, let you know, after the hearing, but we I believe they're doing a lot of outreach with those resources to try to get folks to use the program.
Diana Ayala
1:32:46
Okay.
1:32:48
Unspent funding from fiscal year twenty four was rolled into '25 due to the the time it took to implement last year's FPL increase.
1:32:56
Given that this year's increase took even longer to implement, do you anticipate all budgeted funding in fiscal year twenty five for Fair Fairs will be expanded?
Jacques Jiha
1:33:05
I don't know at this moment in time.
1:33:06
But as I said, that maybe at exec, we'll have a better sense.