Your guide to NYC's public proceedings.
AGENCY TESTIMONY
Shrinking surpluses and rising risks in NYC budget
4:29:20
ยท
71 sec
The IBO highlights the decreasing budget surpluses and increasing financial risks facing New York City. Despite relatively close estimates with the Office of Management and Budget (OMB), the city's financial cushion is shrinking at a critical time.
- IBO projects a larger 2025 surplus but a smaller 2026 deficit compared to OMB
- The city's year-end operating surplus has decreased every year since 2022
- IBO recommends allocating a portion of the 2025 surplus to the 'rainy day fund' to address potential future challenges
Louisa Chafee
4:29:20
So let's talk about shrinking surpluses and rising risks.
4:29:24
As was the case last November, IBO's '20 '20 '5 estimates are relatively close to those of the Office of Management and Budget.
4:29:33
I'll refer to them as OMB.
4:29:35
IBO's projected 2025 surplus is about 1,400,000,000.0 larger than OMBs, while IBO forecasts a smaller deficit for 2026.
4:29:45
Overall, this reflects what would be in normal times manageable budget gaps for the city to navigate, but the city's year end operating surplus has decreased every year since 2022.
4:29:59
This means that the city's budgetary cushion is shrinking at a time of very significant changes outside of the city's control.
4:30:08
Historically, the city has used current year surpluses to prepay expenses to balance the next year's budget.
4:30:14
If the council is considering ways to close the 2026 budget gap, IBO recommends that strong consideration be given to a portion of the 2025 surplus be allocated to the so called rainy day fund.
4:30:29
To state the obvious, it's starting to rain.