March 2017 NYC Budget Presentation
In his briefing on Mayor deBlasio’s Preliminary FY 2018 NYC Budget, James Parrott highlights the following:
Cautious in face of an uncertain Washington: Federal aid is 1/3 of State budget (which is 18% of City budget); 8-10 % of City budget; 64% of NYCHA budget; and nearly half of the Health and Hospitals budget.
State budget better this year, but still challenges: Governor proposed to extend millionaires tax, but it should be enhanced; threat to CFE-settlement determined school aid; handful of negative budget impacts for NYC.
Before Trump’s budget outline and the proposed American Health Care Act (Trumpcare), the preliminary City budget looked reasonable: Manageable budget gaps, reasonable reserves and moderate revenue growth in the context of slower job growth with wage and income growth improving.
Parrott summarized some of the initiatives taken by the deBlasio administration that reduce income inequality and outlined additional actions that could be taken. He also noted that the extended recovery and low unemployment are starting to provide real gains for workers and their families, noting the following indicators: NYC’s unemployment rate fell to 4.5% in January, the lowest level on record since 1976; real median household income rose 5.1% in 2015; from 2013-16, real wages have increased by 7.1% for workers at the 1st decile in the wage distribution, and by 8.4% for workers at the median; and for black workers over this period, real wages at the 1st decile rose 8.9%, and for the median black worker, 14.5%. Latino workers also saw significant, but smaller, real wage gains.
PDF of full budget presentation here.