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Q&A
Discussion on uncollected city revenue and outstanding payments
3:58:18
·
3 min
Council Member Gale A. Brewer inquires about $2.1 billion in uncollected city revenue. Francesco Brindisi, Executive Deputy Controller for Budget and Finance, explains the components of this uncollected amount and the challenges in recovering it. Comptroller Brad Lander adds insights on estimating what the city owes and is owed at the end of the fiscal year.
- The $2.1 billion includes ECB summonses, property tax delinquencies, and unpaid speed and red light tickets
- Some of the uncollected amount is affected by pandemic-related factors and enforcement issues
- Lander highlights challenges in estimating outstanding contracts and federal payments, especially given current circumstances
- The discussion emphasizes the need for attention to this area by future oversight efforts
Gale A. Brewer
3:58:18
Next is I always ask, IBO, but this unpaid, dollars, the ones that don't get collected.
3:58:26
A few years ago when I asked, IBL was $2,100,000,000 Is that something that you look at?
3:58:31
I always get told, oh, it can never be collected.
3:58:34
But it's very frustrating for those of us who do pay our taxes to see, those that don't.
3:58:39
Is that something that you look at?
3:58:41
Is that something that we should be looking at?
Francesco Brindisi
3:58:45
Well, the 2,100,000,000.0 has several components.
3:58:49
Right?
3:58:50
That's got the ECB return to oath summonses and adjudication.
3:58:57
It's got property tax delinquencies and it had unpaid speed tickets and red light tickets.
3:59:06
Right?
3:59:07
In part, that number was affected by what happened during the pandemic and enforcement during the pandemic.
3:59:13
So some of those red light tickets of, you know, that were outstanding of coming down.
3:59:18
There is a lean sales schedule for June 3 at this point.
3:59:22
So part of that is is being addressed.
3:59:25
I mean, we did an audit about the the red light cameras.
3:59:29
Right?
3:59:30
And and the speed cameras.
3:59:31
You know, that those are still outstanding issues.
3:59:34
The ECB that is many of those entities are not in existence anymore.
3:59:40
And there is no nothing that we can go, that the city can go after that.
3:59:44
And you know the Department of Finance often does, well at times does amnesties.
3:59:50
Right?
3:59:50
And people come forth.
3:59:52
But it's not like they generate a huge amount of money.
3:59:55
Right?
3:59:55
They generate $4,060,000,000.
3:59:57
Right?
3:59:57
So that's in part, that's a reflection of the fact that a lot of that money is notional and it's in the books rather than being real.
Brad Lander
4:00:06
Okay.
4:00:07
I'm gonna actually say one thing that sort of builds from that that's since this is my you know, will be my last year as controller for future council oversight work and and others potential future work in the controller's office or elsewhere, no one has probably done more than Francesco to pay attention to the quality of our estimates for what the city is owed and what the city owes at the end of a year.
4:00:34
And some of that is things like speeding tickets, but some of that is we've still got outstanding contracts.
4:00:40
And obviously if we're 10 or a year late in paying, often we don't really know what they're going to actually invoice us for.
4:00:48
The same is there's similar challenges collecting on federal contracts.
4:00:52
My goodness this year when we end the fiscal year, how we estimate what the federal government owes us and is likely to pay us is going to present challenges.
4:01:03
So I'm proud of the work that my team has done in the Bureau of Accountancy under Francesco's leadership, but that is an area that needs real attention from the next New York City Controller and from oversight.
Gale A. Brewer
4:01:18
I was like oversight and investigation.
Brad Lander
4:01:20
Like the city council as well.