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Q&A
Council Member Brannan questions IBO on revenue forecasts and foundation aid
4:39:02
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3 min
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Council Member Justin Brannan, Chair of the Committee on Finance, engages in a Q&A session with representatives from the Independent Budget Office (IBO) regarding revenue forecasts and foundation aid. The discussion covers differences between IBO and OMB forecasts, as well as potential impacts of changes to foundation aid as proposed by the Rockefeller Institute.
- IBO's revenue forecast is approximately $1.2 billion higher than OMB's, primarily due to differences in personal income tax and property tax estimates.
- IBO analyzed potential impacts of changes to foundation aid, including adjustments to poverty count, pupil need index, and regional cost index.
- The discussion touched on the need to consider students in temporary housing and districts experiencing large enrollment increases due to asylum seekers.
Justin Brannan
4:39:02
Thank you very much.
4:39:05
I wanna ask about the revenue forecast.
4:39:08
So IBO recently issued a revenue forecast that includes approximately $1,200,000,000 more in tax revenue than OMB's forecast.
4:39:17
Can you explain where you're seeing your biggest differences from OMB's forecast?
Krista Olson
4:39:22
Yes.
4:39:24
So in the areas of particularly personal income tax, IBO came in with a higher revenue forecast than OMB, to a lesser extent our estimates on property
Kevin Lee
4:39:35
tax.
4:39:38
Okay.
Justin Brannan
4:39:40
And on foundation aid, I know IBO recently released a report, analyze the potential impact of changes as proposed by the Rockefeller Institute and their report on foundation aid.
4:39:51
What were the key takeaways from that report?
Sarita Subramanian
4:39:56
Yes.
4:39:57
So IBO looked at each Rockefeller Institute recommendation independently and estimated the impact to New York City.
4:40:07
And so after the governor's budget was proposed, we looked at specifically adjusting the poverty count and the impact of that to New York City would be, you know, over a $300,000,000 decline in revenue and that would be slightly offset by adjusting the pupil need index and that would bring New York City somewhere in revenue, but that doesn't offset the decline.
4:40:37
I think another key part of our analysis points to the potential for adjusting the regional cost index and updating that part of the formula being particularly impactful for New York City in terms of bringing additional revenue.
4:40:55
We also pulled from previous testimony to say what of the Rockefeller Institute recommendations did not were not included.
4:41:06
And I think one area in particular that's impacting New York City is adjusting for students in temporary housing as a as a key need as well as a general ability to fund districts that experience large increases in enrollment.
4:41:23
For example, as what happened during the asylum seekers.
Justin Brannan
4:41:28
Mhmm.
4:41:30
K.
4:41:30
Questions from my colleagues?
4:41:32
Okay.
Gale Brewer
4:41:33
Excellent testimony.
4:41:35
Yeah.
Selvena Brooks-Powers
4:41:36
Thank you.
Nantasha Williams
4:41:37
Yes.
4:41:37
I have a question.
4:41:39
Me, I'm on Zoom.
Justin Brannan
4:41:43
Okay.
4:41:43
Hang on one sec, guys.
4:41:54
Natasha, hang on.
4:42:12
Alright.
4:42:13
Thank you so much, guys.
4:42:14
Appreciate it.
4:42:14
We can't rules say because we don't have quorum.
Althea Stevens
4:42:17
We can't
Selvena Brooks-Powers
4:42:18
Okay.
4:42:18
No problem.
4:42:19
Thanks.
Justin Brannan
4:42:20
Thank you, IBO.
4:42:32
Okay.
4:42:32
Next, we will hear from the Department of Finance.