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AGENCY TESTIMONY
Challenges and risks to the city budget
0:20:48
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108 sec
Director Jiha outlines significant challenges and risks facing the city's budget, including asylum seeker costs, state budget impacts, and potential economic threats.
- Ongoing care for over 38,000 asylum seekers at a monthly cost of approximately $200 million
- Total estimated cost for asylum seekers since July 2022 reaching $7.7 billion
- Unexpected cost shifts from the state budget, totaling an additional $550 million annually
- Potential economic threats from recent trade policies and their impact on financial markets
Jacques Jiha
0:20:48
Although we have made a robust investment and baseline many initiatives for the first time, we must acknowledge the significant challenges and risks that remain ahead.
0:21:02
We are still caring for more than 38,000 asylum seekers on our own at a monthly cost of approximately $200,000,000 with total estimated cost since July 2022 totaling $7,700,000,000.
0:21:21
In the preliminary budget, we had assumed that the state will provide $1,000,000,000 in resources in its fiscal year twenty six budget to cover migrant expenses.
0:21:33
Because we have to release the executive budget before state budget adoption, and it was apparent at the time that the state would not meet this need, we backfilled this budget hole with city resources.
0:21:47
We also reflected cost shift of a hundred and $66,000,000 annually related to MTA power transit obligations and after 4PM school busing.
0:22:00
To our disappointment, the adopted state budget shifted far more cost to the city than we had anticipated.
0:22:10
This includes a $275,000,000 annual increase in the city's contribution for child care vouchers, which has grown to $328,000,000.
0:22:24
Altogether, the state budget will cost city taxpayers an additional $550,000,000 annually, bringing the total state budget impact to about $1,700,000,000.