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Q&A
Changes in SBS contract budget between FY 2025 and FY 2026
1:32:11
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159 sec
Council Member Feliz inquires about the significant reduction in the SBS contract budget for FY 2026 compared to FY 2025, despite only one fewer contract.
- The FY 2026 budget for contracts is $75.6 million less compared to FY 2025.
- Commissioner Gross explains that the difference is primarily due to city council discretionary funds not yet being included in the budget.
- There's also a reduction of $25 million for EDC reflected in the FY 2026 preliminary budget.
- The total contract budget for FY 2026 is $136 million, including large contracts for EDC, NYC Tourism and Conventions, and the Trust for Governors Island.
Oswald Feliz
1:32:11
Okay, a few more questions and then we'll conclude so that we could hear testimony from the bids who have joined us.
1:32:19
So the contract budget.
1:32:20
So the preliminary plan includes 111 contracts for FY 2026, which is only one less contract than the number for contracts last year.
1:32:31
So FY 2026, contract.
1:32:35
But the FY 2026 budget for contracts is $75,600,000 less compared to 2025.
1:32:43
So one less contract, but we have 75,600,000.0 less.
1:32:50
And if those numbers are a little off, just let me know.
1:32:54
Can you let us know what contract services were reduced and why?
1:33:00
And what the largest reduction in the cost of contracts comes from reduction in general services.
1:33:06
So what's the what type of services have been reduced and why?
Dynishal Gross
1:33:11
Yes, chair Felice.
1:33:12
Let me try to focus in on that.
1:33:16
I think you're referring to the table in the committee report from OMB describing a breakdown, in contract funding and the difference in contract funding, across these two fiscal years, can be, primarily attributed to the fact that city council discretionary funds are not yet in the budget.
1:33:39
That's one important factor and second is again a pass through explanation.
1:33:45
There's reduction reflected in the FY twenty six preliminary budget of twenty five million dollars for EDC.
1:33:54
Again our total contract budget for in FY '26 is a hundred and $36,000,000 and that does include the large contracts for EDC, NYC tourism and conventions and the trust for Governors Island.
1:34:11
So those are the primary reasons for that decrease.
Oswald Feliz
1:34:15
Okay so it's fair to say that the number is going to go back up once the full budget is adopted based on discretionary funding and other factors.
1:34:23
So
Dynishal Gross
1:34:28
you know our hope is that the council will continue to support the initiatives that whose contracts SBS manage and that will be replaced.
1:34:37
I can't speak to whether or not the EDC funding will be replaced in the adopted budget.
1:34:43
However they there's not expected to be any impact on our services based on this decrease.