Your guide to NYC's public proceedings.
AGENCY TESTIMONY
Recommendations for allocating current year surplus
5:25:40
·
65 sec
The IBO suggests options for allocating the current year surplus and emphasizes the importance of building reserves.
- Recommends considering two options: prepaying next year's expenses or placing funds into reserves
- Highlights that using reserves provides more ability to address future shocks
- Suggests that surplus funds in 2025 could be added to reserves without decreasing planned spending
- Recommends exercising fiscal discipline on near-term expenses like uniformed overtime to free up additional funds for reserves
Louisa Chafee
5:25:40
As you, the city council or talk about next steps.
5:25:44
In negotiating the adopted budget, IBO suggests that the city council and the Adams administration weigh how to allocate the current year surplus across two options.
5:25:56
One is to use funds to prepay next year's expenses and the second is placing funds into reserves.
5:26:04
While prepayment may offer short term flexibility and offset existing costs, it does not address the root cause of those costs.
5:26:12
Placing funds into reserves provides more ability to address future shocks and requires the city to address cost overruns in the out years.
5:26:22
IBO has identified surplus funds in 2025, meaning that funds could be added to reserves without decreasing planned spending in the executive budget.
5:26:33
Further exercise of fiscal discipline with respect to near term expenses, like uniformed overtime, could free up additional funds which could be placed into reserves.